AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

KION GROUP AG

Investor Presentation Mar 19, 2012

244_ip_2012-03-19_1fb99e3c-89b8-4048-a484-fc81733ca03e.pdf

Investor Presentation

Open in Viewer

Opens in native device viewer

  • 1 Highlights & Achievements 2011 Gordon Riske
  • 2 Update Financials 2011 Harald Pinger
  • 3 Outlook

Gordon Riske

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. Thirdparty 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 H
i
h
l
i
h
&
A
h
i
2
0
1
1
t
t
g
g
s
c
e
v
e
m
e
n
s
G
d
R
i
k
o
r
o
n
s
e
2 U
d
F
i
i
l
2
0
1
1
t
p
a
e
n
a
n
c
a
s
H
l
d
P
i
a
r
a
n
g
e
r
3 O
l
k
t
u
o
o
G
d
R
i
k
o
r
o
n
s
e

KION key factsDiversified market leader

2Adjusted for one-off items and PPA

Key financials

i
i
I

l
l
n
m
o
n
s
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
R
e
v
e
n
u
e
4,
4
5
5
3,
0
8
4
3,
3
4
5
4,
3
6
8
2
E
B
I
T
D
A
d
j.
a
Ma
in
rg
7
0
9
1
5.
6
%
3
1
1
1
0.
1
%
4
6
2
1
3.
1
%
6
6
5
1
5.
2
%
2
E
B
I
T
d
j.
a
Ma
in
rg
3
5
8
9
%
7.
(
)
2
9
(
0.
9
)
%
1
3
9
3.
9
%
3
6
5
8.
3
%

KION key factsHighlights 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

Further consolidation of 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 and expanding business in after-sales market

  • –Construction start of new production facility in Sao Paulo (Brazil) for counterbalance trucks
  • –Businesses of Liftec in Russia, Ukraine, Kazakhstan to be integrated into Linde network
  • –Joint Venture with Voltas to further strengthen set-up in growth region India
  • –Acquisition of further tranche of shares in Baoli and now holding close to 100% of shares
  • –Complete take-over of UK dealership Linde Sterling to strengthen market position in UK
  • € 500m senior secured notes 2011/18 issued
  • –Improving maturity profile of liabilities
  • –Diversified investor base

Set up of a financial services organization with a separated legal structure within the KION Group

  • –"State of the art" communication towards capital markets
  • –Strengthen KION's financial services business – it supports almost 60% of the group's sales –
  • Further enhancement of risk management in terms of efficiency and transparency by separation of the financial services business segment

Operation FS @ KION: Dedicated Financial Services segment is being set up through segmentation and separation

Separate voluntary reporting of results according to business split based on an additional steering and reporting model

  • Improve transparency, credibility and the possibility to manage the FS business more actively (figures and organization)
  • Give a clear picture of the operational expertise to investors
  • Establish "state of the art" communication towards the capital markets

Separation

Separate legal set-up with dedicated organization, personnel and infrastructure

  • Set up more effective sales support by bundling and strengthening of FS know how
  • Reduce the complexity with external financing partners and meliorate refinancing flexibility
  • Control the risks and benefits of the FS business more effectively

Implementation

Implementation in two phases:

  • Phase I (2011): 5 Core countries1 (current project)
  • Phase II (2012+): Rest of World

1Germany, France, UK, Spain, Italy

Phase I : Start of KION Financial Services segment as planned

S
t
t
a
s
u
1
)
F
S
i
f
d
d
7
t
c
a
p
e
s
o
n
e
v
u
E
i
i
l
i
d
d
f
f
h
i
d
t
t
t
s
n
g
e
m
p
o
y
e
e
s
m
g
r
a
e
a
n
n
e
s
a
r
e
x
w
4
3
0
0
0
U
i
f
1
6
i
i
l
d
d
l
l
l
f
d
t
t
t
t
t
n
s
r
o
m
e
n
e
s
e
a
a
e
a
n
e
g
a
r
a
n
s
e
r
r
e
v
u
y
S
S
S
@
i
l
i
d
F
f
L
I
d
i
d
t
t
t
t
p
e
c
a
e
s
o
w
a
r
e
a
n
o
p
e
r
a
e
p
r
o
c
e
s
s
e
s
r
e
a
o
-o
p
e
r
a
e
z
v
y
-
f
f
f
T
i
i
i
h
b
k
i
d
t
t
t
t
r
a
n
s
e
r
o
r
e
n
a
n
c
n
g
c
o
n
r
a
c
s
w
a
n
n
g
p
a
r
n
e
r
s
a
g
r
e
e
A
i
d
i
i
d
f
i
d
t
t
t
c
c
o
u
n
n
g
a
n
r
e
p
o
r
n
g
r
e
q
u
r
e
m
e
n
s
e
n
e
I
T
L
i
d
D
M
i
i
f
i
i
f
l
i
d
G
t
t
t
t
t
o
e
a
a
g
r
a
o
n
v
a
n
o
e
x
s
n
g
p
o
r
o
o
e
x
e
c
u
e

1) Two entities in Germany (KION FS, STILL); 2 in France: (Fenwick, STILL), 1 in UK, 1 in Spain, 1 in Italy

Summary - order intake (units)Recovery continued in FY 2011

KION Group

  • •Back to 2008 levels with ~145k units sold in 2011
  • •Order intake in units grows +19% in 2011 (+32% in 2010)
  • •December 2011 with order intake of 14.7k units strongest performance since June 2008
  • •Importance of growth regions increased to ~30% of order intake (23% in 2008)
  • •Global market share stable at about 15%

Market Development

  • •Market reached new high of ~977k units and grew +23% (+45% in 2010)
  • •WEU biggest market with ~278 units (93% of 2008 levels)
  • •China with ~238k units second biggest market (210% of 2008 levels)
  • •Structural market change is progressing with growth regions driving global recovery

Global market order intake (units)

Growth markets gain importance

Industrial trucks order intake by region (in units)

Global market order intake (units)Recovery continued in 2011

March 19, 2012 | Update Call FY 2011

KION order intake (units)

Strong performance in Q4 closes the year 2011

Industrial trucks order intake (in units)

KION breakdown by geography

KION revenue and order intake shares in BRIC countries have doubled

WEU ROW China Brazil Russia India Total order intake in 2011: 144,744 units

Agenda

1
H
i
h
l
i
h
&
A
h
i
2
0
1
1
G
t
t
g
g
s
c
e
v
e
m
e
n
s
o
d
r
o
n
R
i
k
s
e
---------------------------------------------------------------------------------------------------------------------------------------------------- ------------------ -----------------------

2 Update Financials 2011 Harald Pinger

3 Outlook

Gordon Riske

SummaryStrong performance in 2011

  • Order intake with €4,682m strongly above prior year (+21.3%), supported by good Q4/11 performance of € 1,217m (Q4/10: €1,064m). –
  • Order book increased to about €1bn
  • Revenues exceeds with €4,368mprior year by +23.6%, driven by strong order intake and good Q4 performance of €1,212m (Q4/10: €1,043m).
  • KION reaches in 2011 adj. EBIT of €365m(2010: €139m) with a margin of 8.3%Q4/11 adj. EBIT of €105m above Q4/10 level (€63m).
  • FCFat +€234m significant above prior year (2010: €76m). –
  • Net Debt of €2,657mstable in 2011 (Dec 10: €2,641m) –
  • Leverage continues to decrease (2011: 4.0x). –
  • FTEof 21,862 (incl. new acquisitions) increased by 9.5% compared to prior year.

FTE including apprentices and new acquisitions (Sterling – UK, Cailotto – Italy, Voltas – India, Manusom – France and Liftec - Russia, in total +627 FTE).

Financial overviewKION with strong Q4 and FY 2011 performance

i

n
m
Q
/
4
1
0
Q
/
4
1
1
Q
4
/
1
0
vs
in
%
2
0
1
0
2
O
d
In
ke
ta
r
e
r
1,
0
6
4.
4
1,
2
1
7.
4
1
4.
4
%
3,
8
5
9.
7
4,
6
8
1.
Re
ve
nu
e
1,
0
4
2.
5
1,
2
1
1.
7
1
6.
2
%
3,
5
3
4.
5
4,
3
6
8.
4
E
B
I
T
D
A
1
2
1.
0
1
0
3.
2
-1
4.
%
7
3
8
0.
2
6
9.
2
5
d
j
d
E
B
I
T
D
A
te
u
s
1
4
8.
8
1
8
3.
4
2
3.
3
%
4
6
2.
2
6
6
5.
3
Ma
in
rg
1
4.
3
%
1
5.
1
%
1
3.
1
%
1
5.
2
%
B
I
T
2
8.
8
-8
9
1
0
0
%
>-
3
4.
6
2
1
3.
2
d
j
d
E
B
I
T
te
s
u
6
2.
7
1
0
0
5.
6
%
7.
5
1
3
9.
4
3
6
4.
6
Ma
in
rg
6.
0
%
8.
7
%
3.
9
%
8.
3
%
C
h
F
low
e
e
a
s
7
7.
0
1
8
4.
1
1
0
0
%
>
7
6.
0
2
3
4.
2
W
C
6
6
7.
8
6
6
0.
7
-1
1
%
6
6
7.
8
6
6
0.
7
%
f
Re
o
ve
nu
e
2
1.
4
%
1
8.
2
%
1
8.
9
%
1
5.
1
%
i
l
Ex
d
i
ta
tu
a
p
p
e
n
re
s
4
9.
2
5
3.
9
9.
7
%
1
2
3.
5
1
3
3.
0
(
)
He
d
F
T
E
t
a
c
ou
n
in
l.
ic
t
c
a
p
p
re
n
e
s
1
9,
9
6
8
2
1,
8
6
2
9.
%
5
1
9,
9
6
8
2
1,
8
6
2

Adjusted EBITMargin 2011 above 2008 – quarterly trend remains positive

Key financials KION with strong Q4 performance

Adjusted EBITDA €m / Adjusted EBITDA margin (%)

Adjusted EBIT €m / Adjusted EBIT margin (%)

March 19, 2012 | Update Call FY 2011

TWC days development (average)

TWC development (averages in €m)

Highlights

  • accounted for 24% of total inventories or 3% of Net Sales.

TWC Average

Continuously improving and significantly below historical levels

Net debtSignificant deleveraging through higher volumes and cost control

Net financial debt in €m / Leverage (net financial debt / LTM adj. EBITDA)

3 O
l
k
t
o
o
u
G
d
R
i
k
o
r
o
n
s
e
2 U
d
F
i
i
l
2
0
1
1
t
p
a
e
n
a
n
c
a
s
H
l
d
P
i
a
r
a
n
g
e
r
1 H
i
h
l
i
h
&
A
h
i
2
0
1
1
t
t
g
g
s
c
e
v
e
m
e
n
s
G
d
R
i
k
o
r
o
n
s
e

Outlook 2012Further improvement in margins

The KION Group has started 2012 with the benefit of a significant order backlog. Provided that no severe events have an adverse impact on either the global industrial-truck markets or the Company itself, the KION Group is optimistic that it will manage to achieve further modest year-on-year revenue growth. The measures that it has started to implement – especially those aimed at increasing capacity utilisation at its production plants – should further strengthen its profitability.

The pace of growth in the industrial-truck market is likely to return to more normal levels in 2012 owing to the higher prior-year figures that will then be used in year-on-year comparisons. The sovereign debt crisis in public finances continues to pose a risk to global macroeconomic trends and has had a visible impact on the real economy in recent months, especially in western European countries.

The market for industrial trucks, which form the backbone of the global logistics industry, will retain its appeal over the long term. By expanding its business in emerging markets, the KION Group is excellently placed to benefit from future market trends and developments; and by optimising the structure of its production facilities in Europe, it is laying the foundations underpinning the long-term competitiveness of its trucks.

IR Contact

Contact person for Investor RelationsSilke Glitza-StambergerHead of Investor RelationsPhone +49 (0) 611.770-450E-mail [email protected]

Contact person for Creditor RelationsMaria BabilasHead of Treasury Phone +49 (0) 611.770-462E-mail [email protected]

Contact person for MediaMichael HaugerHead of Corporate CommunicationsPhone +49 (0) 611.770-655E-mail [email protected]

KION Group - We keep the world moving

Talk to a Data Expert

Have a question? We'll get back to you promptly.