KION GROUP AG Corporate Presentation. Wiesbaden, October 2017

Transcription

1

2 KION GROUP AG Corporate Presentation Wiesbaden, October 2017

3 KION Group at a glance A world leader in supply chain solutions, industrial trucks, services European No. 1 + Global No. 2 (a) in industrial trucks and services 1.2 million Growing truck base worldwide support after sales business Global presence in more than 100 countries with over 30,000 employees Around 1,500 sales and/or service locations Global No. 3 (b) in supply chain solutions Over 6,000 installed warehouse systems at customers World-renowned brands are clear industry leaders. Note: Based on 2016 data and financials Source: (a) McKinsey market study, Logistik Journal, (b) Modern Materials Handling, May

4 KION Group Strategy 2020 Our aspiration for profitable growth Growth Close the gap towards global market leadership covering all customer segments Being on par with the peer group regarding capital efficiency Remain resilient enough to profitably cope with revenue declines as large as during financial crisis in 2009 Capital efficiency Resilience Profitability Expand margin as the most profitable player in the industry 4

5 KION Group at a glance A truly global player with a well-balanced portfolio ,6 billion revenue 9,6% adjusted EBIT margin ~ highly skilled employees Industrial Trucks and Services Revenue % 26% 20% 69% 11% Americas EMEA Supply Chain Solutions APAC New business 60% 40% Services 1 Based on pro-forma financials for FY

6 Growth drivers and trends Attractive market with growth profile above GDP Industrial trucks demand grows approx. 1.5x World GDP 1 Growth drivers Growth in % per year 4.1% 3.3% 4.2% 2.8% Global new trucks 3.0% 2.5% 6.8% Global GDP 2.6% Globalisation Industrialisation Automation systems (Top 20 suppliers revenue in $bn) 11.4 CAGR ~8% CAGR ~10% Fragmentation of supply chains E-Commerce Industry 4.0 Automation Digitisation e 1 Calculated based on CAGRs for new truck sales and GDP for Source: WITS/FEM, IMF; Modern Materials Handling

7 KION Group Segments A unique and complete material handling offering KION Group segments Industrial Trucks and Services Supply Chain Solutions Corporate Services incl. Financial Services Operating Units Linde MH EMEA STILL EMEA KION Americas KION Asia Pacific Operating Unit Dematic Internal service entities Holding functions 7

8 Corporate Services KION Group Segments A unique and complete material handling offering Industrial Trucks and Services Supply Chain Solutions 8

9 Integrated Total Offering across KION From industrial trucks to fully automated warehouses Fleet data management Warehouse trucks E-trucks IC-trucks 9

10 Industry 4.0 and Internet of Things (IoT) How the KION Group adds value to customer operations and warehouses Automation systems Intelligent trucks Trucks equipped with electronic control unit Increased efficiency also from driver assistance systems Fleet data management Fleet data services connect trucks with management tool Optimise truck fleet usage Financial and safety benefits Automated trucks Full range of automated series trucks Enable automation of the entire material flow Customised integrated supply chain solutions Automated trucks combined with further hard- and software 10

11 Benefits for the customer Cost-efficient material handling 68% EMEA Acceleration of product handling & shipment Prevention of accidents & damages Optimisation of operation times & energy consumption 11

12 Market-leading positions globally KION Group: A unique player in Intralogistics 4.0 Industrial trucks 1 - Top 20 suppliers 2016 Automation systems 1 - Top 20 suppliers Toyota 2 3 Mitsubishi Nichiyu 4 Jungheinrich 5 Crown 6 Hyster-Yale 7 Anhui Heli 8 Doosan 9 Hangcha 10 Clark 11 Komatsu 12 Hyundai Heavy Industries 13 Combilift 14 EP Equipment 1 15 Konecranes 16 Lonking 17 Manitou 18 Hubtex 19 Paletrans 20 Godrej & Boyce + 1 Daifuku 2 SSI Schäfer Murata Machinery 5 Vanderlande 6 Mecalux 7 Beumer Group 8 Intelligrated 9 Fives Group 10 Swisslog 11 Knapp 12 TGW Logistics 13 Grenzebach 14 Witron 15 Kardex 16 Bastian Solutions 17 Dearborn Mid-West viastore Systems 20 System Logistics Unique combination of industrial trucks and automation systems Market-leading positions globally 1 Ranking by total company revenue Including significant revenue from non-automation businesses Source: Modern Materials Handling, May and August

13 Industrial Trucks and Services 13

14 Industrial Trucks and Services: Segment Overview A world leader in industrial trucks with a strong service business Current key financials Revenues by product 2 (in m) Q1-Q Order intake 4,280 5,383 5,146 Revenue 4,070 5,203 5,045 Services 45 % New Business 55 % Adjusted EBIT Adjusted EBIT Margin 11.0% 11.3% 10.5% Revenue by geography 2 Truck order intake by industry 3 South America 3 % North America 2 % Asia 10 % EEU 9 % Rest of WEU 15 % RoW 3 % Spain 3 % UK 8 % Italy 7 % Germany 25 % France 16 % Other Industries 22 % 1 Adjusted for PPA items and non-recurring items 2 based on key data Calculation based on German customer base only 2016 Logistics 16 % Paper & Print 3 % Food 11 % Construction 6 % Beverage 6 % Metals 11 % Wholesale 7 % Chemicals 10 % Automotive 8 % 14

15 Integrated Industrial Trucks and Services business model Global capital goods ecosystem of products and services New truck sales ~ 45% of new truck sales carry financing contracts. Financial Services Ongoing customer relationship (e.g. short-term rental) triggers new truck sales. Rental and used trucks Products Services After duration of financing, trucks are used in rental fleet or sold as used trucks. Most financing contracts also contain service contracts. Aftersales and service solutions 15

16 Industrial Trucks und Services A unique range of products 1 serving customer needs worldwide Internal combustion (IC) counterbalanced trucks Mainly used outside Electric (E) counter-balanced trucks Mainly used inside Warehouse technology: rider trucks Faster transportation of loads Specially designed for warehouse requirements Warehouse technology: pedestrian trucks Transportation of loads at a walking pace Tractors Industrial processes / train stations / airports Automated and autonomous vehicles Warehouse & Distribution Solutions 1 Note: The products shown are just a selection from our comprehensive product range. 16

17 Supply Chain Solutions 17

18 Supply Chain Solutions: Segment Overview Leading in material handling automation solutions Key financials Revenues by product 3 (in m) Q1-Q Order intake 1, Revenue 1, Adjusted EBIT Adjusted EBIT Margin 9.7% 1.6% 6.1% Services 25 % Business solutions 75 % Revenue by region 3 Revenue by industry 2 APAC 11 % EMEA 26 % Americas 62 % Other 11 % Parcel 7 % Apparel 8 % Grocery 8 % Food and beverage 13% General Merchandise 26 % Wholesale 14 % E-commerce 13 % 1 Adjusted in line with KION Group s adjusted financial performance indicators 2 Financials for FYE-Sep Based on pro-forma financials for FY

19 Broad Supply Chain Solutions offering Comprehensive range of high-end warehouse automation technology Warehouse control and management software Advanced real-time, knowledge-based logistics software beyond warehouse management & control software Conveyor systems Sortation systems 68% EMEA Storage systems Picking systems Palletising systems All conveyor types for assembly, manufacturing and distribution Focus on fast, reliable sortation Full sortation technology range Complete storage range including AS/RS 1, shuttles and racking Voice-directed picking Pick and Put-to-Light systems Mixed case palletising solutions for grocery Customer service, upgrades and refurbishments 1 AS/RS = Automated storage and retrieval systems 19

20 Supply Chain Solutions Total life cycle support optimises system productivity Modernisation, upgrades Spare parts service Consulting, training Worldwide service network More than 600 service employees in 18 countries reach 90% of customers within 2 hours Remote monitoring, diagnostics and support Focus on faultless system Operations support onsite Dematic service solutions Customer Service onsite Remote monitoring 68% EMEA Modernisation and upgrades New life for old systems regardless of make or model Increased throughput, productivity and accuracy Customised programmes can be implemented with minimal disruption to operational schedule 20

21 Corporate Operational KION Group History Almost two centuries of leadership Start of forklift truck production at Fenwick Start of forklift truck production at STILL. First electric trolleys and forklift trucks Production of first DEMAG storage and retrieval machines 351 series sets new design and performance standards for forklift trucks First manufacturer to introduce ergonomic model in India Launch of 39X truck Launch of hybrid trucks First steps towards using lithium-ion battery modules in various electric truck models Start of igoeasy Cooperation with Balyo for robotic solutions Start of forklift truck production at OM Start of forklift truck production at LMH Hubtrac First forklift truck with hydro-static drive Launch of energy saving program Blue Q Start of Strategy Foundation of OM Foundation of Güldner Motoren- Gesellschaft by Carl von Linde, Hugo Güldner and partners Formation of Demag, Mech. Werkstätten (Germany) Foundation of STILL Formation of Rapistan (USA) Foundation of Voltas Linde AG takes over STILL Foundation of Colby (Australia) Acquisition of Fenwick JV with Baoli Formation of KION Group, acquisition by KKR/GSCP Foundation of Baoli Linde AG takes over OM Strategic Partnership with Weichai Power JV with Voltas Combination of OM and STILL Dematic acquires HK Systems IPO of KION GROUP AG Voltas becomes KION India Acquisition of Retrotech Dematic acquires SDI Group and Reddwerks Acquisition of Egemin Handling Automation Linde NA becomes KION North America Acquisition of Dematic 21

22 Shareholder structure Included in MDAX and STOXX Europe 600 indices Aktionärsstruktur Shareholder structure as zum at September 22. Juli KION GROUP AG 0.1 % Free float 56.6 % Weichai Power 43.3 % 22

23 Global Manufacturing Network Production facilities for Industrial Trucks and Supply Chain Solutions Frankfurt, KION Group Head Office Holland Grand Rapids Jingjiang Hamburg Salt Lake City Monterrey Summerville Pune Suzhou Putian Xiamen Châtellerault Zwijndrecht Heusenstamm/ Offenbach Bielefeld Stříbro Českŷ Krumlov Indaiatuba Sydney Aschaffenburg Milan Reutlingen Luzzara Moravany 23

24 Strong global sales and service network provides unique access to a global customer base Americas EMEA Asia Pacific (APAC) ~350 sales and/or service locations ~720 sales and/or service locations ~450 sales and/or service locations More than 1,500 sales and/or service locations in over 100 countries with ~16,000 multi-skilled industrial trucks service staff 1 and more than 3,000 systems engineers 1 Includes direct and additional external service staff 24

25 Financials Key figures KION GROUP AG I Incl. Dematic KION GROUP AG (stand alone) (in m) Q1-Q Order intake 5,699 5,833 5,553 5,216 4,771 4 Revenue 5,675 5,587 5,328 5,098 4,678 Adjusted EBITDA Adjusted EBITDA margin % 16.7% 16.7% 16.7% Adjusted EBIT Adjusted EBIT margin 1 9.9% 9.6% 9.9% 9.5% 9.5% Net income ROCE 2 6.8% 12.4% 11.9% 11.4% Capital expenditures Total R&D spending Free cash flow Net financial debt Employees 6 31,365 30,544 23,506 22,669 1 Adjusted for KION acquisition items and oneoff items 2 ROCE is defined as the proportion of EBIT adjusted to capital employed; ROCE is only calculated at the end of the year 3 Capital expenditures including capitalised development costs, excluding leased and rental assets 4 Order intake for FY 2014 adjusted to new presentation 5 Free cash flow is defined as cash flow from operating activities plus cash flow from investing activities 6 Incl. apprentices and trainees 25

26 KION Group A world leader in supply chain solutions, industrial trucks and services Attractive market with growth profile above GDP A global leader: strong home base & well positioned in growth markets Technology leadership with strong position in warehouse automation KION Group Robust integrated business model with high contribution from services Profitability benchmark well prepared for future value creation Highly motivated and qualified employees 26

27 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 person on behalf of the Company), any question-and-answer session that follows the oral presentation, hard copies of the slides as well as any additional materials distributed at, or in connection with this presentation (collectively, the Presentation ). By attending the meeting (or conference call or video conference) at which the Presentation is made, or by reading the written materials included in the Presentation, you (i) acknowledge and agree to all of the following restrictions and undertakings, and (ii) acknowledge and confirm that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the Presentation. The Presentation is private and confidential and may not be reproduced, redistributed or disclosed in any way in whole or in part to any other person without the prior written consent of the Company. None of the Company, its affiliates or KION Finance S.A. or any of their respective directors, officers, employees, agents or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the Presentation or its contents or otherwise arising in connection with the Presentation. The information and opinions contained in this Presentation do not purport to be comprehensive, are provided as at the date of the document and are subject to change without notice. The Company is not under any obligation to update or keep current the information contained in the Presentation. The Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of the Company, its affiliates or KION Finance S.A. or an inducement to enter into investment activity in the United States or any other country. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on by any person in connection with, any contract or commitment or investment decision whatsoever. Certain industry, market and competitive position data contained in this Presentation, if any, come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein has been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, the Company has not independently verified the data contained therein, and the Company assumes no responsibility whatsoever in respect of the accuracy and completeness of any such data. In addition, certain industry, market and competitive position data contained in this Presentation come from the Company's own internal research and certain estimates are based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. The Company, therefore, also assumes no responsibility whatsoever in respect of the accuracy and completeness of any such research and estimates. Accordingly, no reliance should be placed on any of the industry, market or competitive position data contained in this Presentation. Statements in the Presentation, including those regarding the possible or assumed future or other performance of the Company and its affiliates or its industry or other trend projections, constitute forwardlooking statements. These statements reflect the Company s current knowledge and expectations and projections about future events and may be identified by the context of such statements or words such as anticipate, believe, expect, intend, project and target. By their nature, forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Presentation and the Company undertakes no obligation to update these forward-looking statements. IFRS financial information for any previous fiscal year figures is adjusted in the Presentation as necessary pursuant to changes to IFRS or other mandatory reclassifications. The addition of the totals presented may result in rounding differences. In addition to figures prepared in accordance with IFRS, the Presentation also includes certain non-gaap financial performance measures (e.g., EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net profit, free cash flow, gross debt, and net debt, order intake, order book and ROCE). These non-gaap measures have been included because we believe that investors may find them helpful to measure our performance as reported under the relevant IFRS measures. However, these non-gaap measures should be considered only in addition to, but not in isolation or as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles, and other companies that report similarly named non-gaap measures may define or calculate these financial performance measures in different ways. 27

28