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KION GROUP AG

Investor Presentation Aug 12, 2013

244_ip_2013-08-12_a259e431-5351-47b7-99f6-6f7c2f1aaea5.pdf

Investor Presentation

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DISCLAIMER

NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

This document has been prepared by KION GROUP GmbH (the "Company") solely for informational purposes. For the purposes of this notice, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on behalf of the Company, any question-and-answer session that follows the oral presentation, hard copies of this document and any materials distributed at, or in connection with the presentation (collectively, the "Presentation"). By attending the meeting at which the Presentation is made, or by reading the Presentation, you will be deemed to have (i) agreed to all of the following restrictions and made the following undertakings and (ii) acknowledged 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, the companies in the Company's group 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, or an inducement to enter into investment activity in the United States or in any other jurisdiction in which such offer, solicitation, inducement or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.

Any offering of securities is only addressed and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) ("Qualified Investors"). Any offering of securities is directed only at, investment professionals (i) who have professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and high net worth entities falling withinArticle 49(2)(a) to (d) of the Order or (ii) to whom it may otherwise be lawfully communicated (all such persons together being referred to as "Relevant Persons"). This presentation must not be acted on or relied on by persons who are not Qualified Investors or Relevant Persons. Any investment activity to which this communication relates is available only to Qualified Investors and Relevant Persons and will be engaged in only with Qualified Investors and Relevant Persons.

To the extent available, the industry, market and competitive position data contained in this presentation come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have 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. In addition, certain of the industry, market and competitive position data contained in this presentation come from the Company's own internal research and estimates 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. Accordingly, undue reliance should not 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 or its group or its industryor other trend projections, constitute forward-looking statements. 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.

1 Achievements Q2 2011

  • 2 Update Financials Q2 2011
  • 3 Outlook

Highlights Q2 2011

Strong financial performance driven by market surge and cost control

  • KION benefits from strong position in Europe and growth regions
  • – Global market back on record level drives business volume up significantly, regional market structure differs significantly from previous peak in 2008
  • –Service business grows, driven by higher utilization levels and spare parts demand
  • –Cost control and restructuring initiatives significantly improved profitability
  • –Continued positive trend in margin development

€ 500m senior secured notes 2011/18 issued

  • –Improving maturity profile of liabilities
  • –Diversified investor base

KION plans further consolidation of its European plants

  • –Relocation of warehouse truck production from Montataire (France) to Luzzara (Italy)
  • –Consolidation of STILL/OM counterbalance production in Hamburg (Germany)

Investments to strengthen position in key markets

  • –Joint Venture with Voltas to further strengthen set-up in growth region India
  • Construction start of new production facility in Sao Paulo (Brazil) for counterbalance trucks
  • –Complete take-over of UK dealership Linde Sterling, to strengthen market position in UK

Footprint – Consolidation of European plants

Planned Project 1: Relocation of warehouse trucks produced in Montataire to our warehouse site in Luzzara. –

Planned Project 2:

Relocation of counterbalance trucks production of the Bari site to the larger site in Hamburg.

Footprint – Consolidation of European plants

Technical Utilization Target : 60 - 70 % in all factories

Linde Sterling Ltd.Strengthening our market position in the UK

Highlights

  • – Acquisition of remaining 51% shares in Sterling resulting in 100% ownership by Linde UK
  • – One of the largest Linde UK national network companies
  • – Leading supplier of trucks and after-sales in North West England and North Wales
  • – Four customer centers supplying new and used trucks, rental and after-sales support
  • –Over 30 years of business experience
  • – Revenue generation 2010 of GBP 32m with approximately 300 employees

August 12, 2011 | KION Group Bondholders' Update Call Page 7

Global Market Order Intake (units) Strong growth in first half of 2011

Source: WITS/ FEM

Major industrial truck markets (units) All markets with continued improvements

KION New Trucks Order Intake (units)Strong Q2 17% ahead of previous year

KION Group quarterly order intake (units)

  • 1 Achievements Q2 2011
  • 2 Update Financials Q2 2011
  • 3 Outlook

Executive Summary

Strong Q2 - good base for the next quarters 2011

  • Order intakeof €1,195mQ2 strong and on 2008 level.
  • Net Sales exceeds 2010 by +25% Q2 (Q2/11: €1,096m) as a result of strong order intake in the last months.
  • Adjusted EBIT of €101m(9.2%) in Q2/11 (€30m in Q2/10). Q2 adj. EBIT includes €7m profit from investments, which is almost the expected FY amount. Without this effect Q2 margin is at 8.5%.
  • FCF in Q2/11 is with -€26mbelow prior year (Q2/10: +€4m), due to acquisitions (Voltas and Sterling).
  • Net Debt increased by €47m compared to Dec 10 to €2,688m, influenced by investing activities and transaction costs.
  • Leverage continues to decrease quarter by quarter (LTM 4.5x). On a LQA-basis multiple in Q2/11 is already at 3.9x.
  • FTE increase by 5%compared to prior year (Q2/11: 20,515), including new acquisitions.

FTE including apprentices and new acquisitions Voltas (India, 142 FTE) and Manusom (France, 14 FTE). Sterling FTE are not yet included.

Financial Overview

KION strong performance continued in Q2 2011

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Financial OverviewStrong first half-year 2011

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Attractive Financials

Order intake with significant growth y/y and sequentially

Attractive Financials

Earnings improve significantly through higher volumes and cost control

  • 1 Achievements Q2 2011
  • 2 Update Financials Q2 2011
  • 3 Outlook

  • Global market in 1HY 2011 back on record level. KION benefits from strong recovery in Europe but also continued surge in growth regions esp. China –

  • KION sees further strong demand for new trucks but also for service offerings
  • Current financial markets turmoil, raw material price volatility, deficit crisis in industrialized markets and currency fluctuations remain as risks and are closely monitored

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