KION GROUP AG

Earnings Release • Apr 28, 2023

Quarterly statement

Q1 2023

Key figures

KION Group overview

	Q1	Q1
in € million	2023	2022	Change
Revenue and financial performance
Revenue	2,781.0	2,734.5	1.7%
EBITDA	387.0	373.1	3.7%
Adjusted EBITDA1	389.6	391.0	–0.4%
Adjusted EBITDA margin1	14.0%	14.3%	–
EBIT	129.4	117.8	9.9%
Adjusted EBIT1	156.0	170.3	–8.4%
Adjusted EBIT margin1	5.6%	6.2%	–
Net income	73.5	80.2	–8.3%
Basic earnings per share (in €)	0.55	0.61	–9.2%
Financial position2
Total assets	16,903.9	16,528.4	2.3%
Equity	5,652.3	5,607.8	0.8%
Net working capital3	1,985.7	1,979.3	0.3%
Net financial debt4	1,613.7	1,670.5	–3.4%
Cash flow
Free cash flow5	104.9	–432.6	> 100%
Capital expenditure6	75.4	81.4	–7.4%
Orders
Order intake	2,444.3	2,900.1	–15.7%
Order book2	6,686.6	7,077.8	–5.5%
Employees7	41,196	41,149	0.1%

1 Adjusted for PPA items and non-recurring items

2 Figure as at Mar. 31, 2023 compared with Dec. 31, 2022

3 Net working capital comprises inventories, trade receivables and contract assets less trade payables and contract liabilities

4 Key figure comprises financial liabilities less cash and cash equivalents

5 Free cash flow is defined as cash flow from operating activities plus cash flow from investing activities

6 Capital expenditure in property, plant and equipment and intangible assets, including capitalized development costs

7 Number of employees (full-time equivalents) as at Mar. 31, 2023 compared with Dec. 31, 2022

All amounts in this quarterly statement are disclosed in millions of euros (€ million) unless stated otherwise. Due to rounding effects, addition of the individual amounts shown may result in minor rounding differences to the totals. The percentages shown are calculated on the basis of the respective amounts, rounded to the nearest thousand euros.

This quarterly statement is available in German and English at www.kiongroup.com. The content of the German version is authoritative.

Highlights of Q1 2023

KION Group makes a strong start to 2023

• Revenue up by 1.7 percent to €2.781 billion (Q1 2022: €2.734 billion)
• Adjusted EBIT comes to €156.0 million (Q1 2022: €170.3 million)
• Adjusted EBIT margin stands at 5.6 percent (Q1 2022: 6.2 percent)
• Free cash flow comfortably into positive territory at €104.9 million (Q1 2022: minus €432.6 million)
• KION Group raises outlook for 2023 for the Industrial Trucks & Services segment and the Group; outlook for Supply Chain Solutions confirmed

Business performance and

economic situation

Basis of presentation

The accounting policies used in this quarterly report are essentially the same as those used in the consolidated financial statements for the year ended December 31, 2022. The consolidated interim statement of financial position, the consolidated interim income statement, the statement of comprehensive income, and the statement of cash flows have been prepared in accordance with International Accounting Standard (IAS) 34 'Interim Financial Reporting' and other International Financial Reporting Standards (IFRSs) as adopted by the EU. The reporting currency is the euro.

Management and control

On January 1, 2023, Marcus A. Wassenberg joined the Executive Board of KION GROUP AG as the new Chief Financial Officer (CFO). Valeria Gargiulo will take up the newly created role of Chief People & Sustainability Officer (CPSO) on May 1, 2023. The Supervisory Board reappointed Andreas Krinninger as an Executive Board member for a further five years. He will continue to head up the Industrial Trucks & Services segment in the EMEA region. His new five-year term begins on January 1, 2024.

Dr. Michael Macht will step down from his roles as member and chairman of the Supervisory Board of KION GROUP AG at the end of the Annual General Meeting on May 17, 2023. This means that the shareholders must elect a new member of the Supervisory Board. On March 23, 2023, KION GROUP AG gave notice of its proposal for the new composition of the Supervisory Board that it will be submitting to the Annual General Meeting taking place on May 17, 2023. The plan is for Dr. Nicolas Peter to be elected as a new member of the Supervisory Board and, after the Annual General Meeting, as the chairman of its Audit Committee. Hans Peter Ring, member of the Supervisory Board since June 2013, is to be elected as chairman of the Supervisory Board after the Annual General Meeting once he has stepped down from his post as chairman of the Audit Committee.

Summary of business performance

Sales markets

During the reporting period, the world economy showed signs that it was stabilizing in comparison with the end of 2022. However, the situation remains very challenging. In its economic outlook published at the beginning of April 2023, the International Monetary Fund (IMF) therefore revised its forecast for global economic growth in 2023 to 2.8 percent, after it had projected growth of 2.9 percent for the same period in January 2023. The IMF points out that the recovery remains fragile and that there are still significant risks of a downturn. It cites as central factors the uncertainty as to how Russia's war against Ukraine will unfold, the lingering effects of the coronavirus pandemic

on national economies, and the effects of the tightening of monetary policy by central banks, which could result in further risks arising in the financial and banking sectors.

In the first quarter of 2023, according to the KION Group, the global market for industrial trucks contracted in the EMEA and Americas regions but grew slightly in the APAC region. Order numbers for industrial trucks had been boosted in 2022, mainly during the first half of the year, by the effect of customers bringing forward their purchases in response to extended shipping times resulting from the limited availability of parts and materials. In terms of units sold, the global market for industrial trucks shrank by 6.7 percent over the course of 2022 (World Industrial Truck Statistics). Official figures for the growth trend in the overall market for industrial trucks in the first quarter of 2023 were not available at the time this report was published.

According to the KION Group, the current geopolitical and economic uncertainties meant that customers were still reluctant to invest in supply chain solutions in the first three months of 2023, which also led to the postponement of new orders in the project business. The KION Group, backed by data from research institute Interact Analysis, believes that the positive, medium- to long-term market trends for supply chain solutions remain intact overall.

Business performance in the Group

The KION Group delivered a generally encouraging business performance in the first quarter of 2023 thanks to its Industrial Trucks & Services (ITS) segment. The significant slowdown in the market for industrial trucks, particularly in the main EMEA sales region, caused order numbers in the Industrial Trucks & Services segment to drop by 32.0 percent. However, because the segment was working through the sizeable order book built up in the prior year, this decline did not affect revenue growth in the reporting quarter. The improving supply chain situation and the Group's own steps to stabilize the availability of materials meant it was possible, in the reporting period, to further reduce inventories of unfinished trucks for which only individual components were missing and to ship the trucks to customers. Because of the progress that could then be made in working through the sizeable order book, allowing newer orders to be brought forward, the price increases that the KION Group had implemented in 2022 for new trucks to compensate for higher manufacturing costs began to have a positive impact on the Industrial Trucks & Services segment's revenue and earnings in the first quarter of 2023.

In the Supply Chain Solutions (SCS) segment, the ongoing normalization of growth in the market for supply chain solutions led to a sharp decline in order intake in the project business (business solutions). In addition, the continued unwillingness of customers to make capital expenditure decisions resulted in them putting back new orders. The Supply Chain Solutions segment's quarterly results were weak because it was working through generally lower-margin orders from the order book, because projects were delayed by a lack of bought-in parts, and because of the persistent shortage of skilled workers, particularly in North America. Nevertheless, the segment's adjusted EBIT returned to profit in the reporting quarter, due in no small part to improvements that had already been achieved in project execution and project management and to an expanded supplier base.

The KION Group's free cash flow was comfortably back into positive territory in the first quarter of 2023. A key factor in addition to the level of operating profit was that net working capital remained at virtually the same level as at the end of 2022.

Further progress was made with ongoing capital expenditure projects, including the construction of a new plant for supply chain solutions in the Chinese city of Jinan, Shandong province, and a

state-of-the-art distribution center for spare parts in Kahl am Main, Germany. In January 2023, the KION Group announced that it would also be setting up a production facility for fuel cell systems – initially for warehouse trucks – at its Hamburg site. At the same time, it is investing in proprietary hydrogen production, including the use of electrolyzers, at its Aschaffenburg site.

In March 2023, the KION Group entered into a strategic partnership with Li-Cycle Holdings Corp., a leading North American recycler of lithium-ion batteries. Starting in the second half of 2023, this will see a process put in place to reuse up to 95 percent of the materials from these batteries.

Financial position and financial performance

Business situation and financial performance of the KION Group

Level of orders

The value of order intake for the KION Group came to €2,444.3 million in the first quarter of 2023, which was 15.7 percent lower than the very high figure for the equivalent period of 2022 (Q1 2022: €2,900.1 million).

The Industrial Trucks & Services segment's order intake amounted to €1,956.5 million and was therefore slightly down on the figure for the prior-year period (€2,082.1 million). As expected, the segment was unable to match the very high order numbers for new trucks achieved in the prior year, whereas order intake rose in the service business.

In the Supply Chain Solutions segment, order intake fell sharply by 41.0 percent to €497.5 million (Q1 2022: €843.2 million). This was mainly due to the steep decline in the project business (business solutions). The service business continued to perform well and registered an increase in order volume compared with the prior-year period.

With a volume of €6,686.6 million, the KION Group's order book was still very full at the end of the first quarter of 2023 (December 31, 2022: €7,077.8 million).

Revenue

Consolidated revenue edged up year on year by 1.7 percent to €2,781.0 million (Q1 2022: €2,734.5 million), with uneven revenue growth across the two operating segments. In the Industrial Trucks & Services segment, revenue generated from external customers in the first three months of 2023 jumped year on year by 16.7 percent to €2,002.8 million (Q1 2022: €1,716.3 million). This revenue growth was attributable to increased production output and to the further reduction of the inventories of unfinished trucks for which only individual components were missing, a result of the improving supply chain situation. Because the progress made in working through the sizeable order book meant it was possible to bring newer orders forward, the price rises that had been phased in during the prior year began to boost revenue growth earlier than expected, particularly in the EMEA region. Revenue in the service business advanced thanks to further growth in the volume of the aftersales and rental businesses.

In the Supply Chain Solutions segment, revenue generated from external customers amounted to €777.8 million, which was 23.6 percent lower than the prior-year figure (Q1 2022: €1,017.7 million). The decrease in orders in the project business (business solutions) and delays in the awarding of projects by customers were the main factors in this sharp decline. By contrast, revenue in the service business (customer services) continued to be very encouraging and was up significantly on the prior-year period.

Overall, the proportion of consolidated revenue attributable to the service business stood at 44.4 percent (Q1 2022: 40.2 percent).

Revenue with third parties by product category

in € million	Q1 2023	Q1 2022	Change
Industrial Trucks & Services	2,002.8	1,716.3	16.7%
New business	1,012.5	820.3	23.4%
Service business	990.4	896.0	10.5%
– Aftersales	521.5	468.9	11.2%
– Rental business	284.5	265.8	7.1%
– Used trucks	118.7	102.6	15.6%
– Other	65.7	58.7	11.8%
Supply Chain Solutions	777.8	1,017.7	–23.6%
Business solutions	532.1	813.5	–34.6%
Service business	245.7	204.2	20.3%
Corporate Services	0.4	0.5	–32.4%
Total revenue	2,781.0	2,734.5	1.7%

Revenue by sales region

In the Industrial Trucks & Services segment, the biggest contribution to revenue growth in terms of volume came from the main EMEA sales region in the reporting period. Revenue increased sharply in the Americas region, but declined in the APAC region.

In the Supply Chain Solutions segment, the fall in revenue related mainly to a downturn in business in North America. Revenue lagged behind the prior-year level in the EMEA region as well, whereas it increased in the APAC region.

Revenue with third parties by customer location

	Q1	Q1
in € million	2023	2022	Change
EMEA	1,810.9	1,637.9	10.6%
Western Europe	1,566.1	1,436.6	9.0%
Eastern Europe	208.0	178.8	16.3%
Middle East and Africa	36.8	22.6	63.3%
Americas	682.4	803.9	–15.1%
North America	605.2	746.6	–18.9%
Central and South America	77.2	57.3	34.6%
APAC	287.7	292.6	–1.7%
China	158.8	164.9	–3.7%
APAC excluding China	128.9	127.7	1.0%
Total revenue	2,781.0	2,734.5	1.7%

Earnings

EBIT and EBITDA

Earnings before interest and tax (EBIT) rose year on year by 9.9 percent to €129.4 million (Q1 2022: €117.8 million). EBIT included budgeted purchase price allocation effects amounting to an expense of €25.4 million in the first three months of 2023 (Q1 2022: expense of €22.1 million). There were also non-recurring items amounting to a total expense of €1.2 million. The expense of €30.5 million reported in the prior-year period had predominantly related to impairment losses on assets in connection with the business in Russia.

EBIT adjusted for non-recurring items and purchase price allocation effects (adjusted EBIT) decreased to €156.0 million (Q1 2022: €170.3 million). The adjusted EBIT margin, which had stood at 2.8 percent in the final quarter of 2022, improved to an encouraging 5.6 percent in the first three months of 2023. The adjusted EBIT margin for the first quarter of the prior year had been 6.2 percent.

EBIT

	Q1	in % of	Q1	in % of
in € million	2023	revenue	2022	revenue
EBIT	129.4	4.7%	117.8	4.3%
Adjustment by functional costs:
+ Cost of sales	9.6	0.3%	17.5	0.6%
+ Selling expenses and administrative expenses	15.3	0.6%	21.1	0.8%
+ Research and development costs	0.0	0.0%	0.0	0.0%
+ Other costs	1.6	0.1%	13.9	0.5%
Adjusted EBIT	156.0	5.6%	170.3	6.2%
adjusted for non-recurring items	1.2	0.0%	30.5	1.1%
adjusted for PPA items	25.4	0.9%	22.1	0.8%

Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at €387.0 million in the reporting quarter (Q1 2022: €373.1 million). Adjusted EBITDA was down slightly at €389.6 million (Q1 2022: €391.0 million). The non-recurring items in the prior-year period had mainly related to write-downs of current assets in connection with the business in Russia. The adjusted EBITDA margin for the reporting quarter stood at 14.0 percent (Q1 2022: 14.3 percent).

EBITDA

in € million EBITDA	Q1 2023 387.0	in % of revenue 13.9%	Q1 2022 373.1	in % of revenue 13.6%
Adjustment by functional costs:
+ Cost of sales	0.9	0.0%	7.6	0.3%
+ Selling expenses and administrative expenses	3.0	0.1%	8.9	0.3%
+ Research and development costs	0.0	0.0%	0.0	0.0%
+ Other costs	–1.3	–0.0%	1.4	0.1%
Adjusted EBITDA	389.6	14.0%	391.0	14.3%
adjusted for non-recurring items	2.6	0.1%	17.9	0.7%
adjusted for PPA items	0.0	0.0%	0.0	0.0%

Key influencing factors for earnings

The cost of sales rose by only 0.3 percent to €2,137.4 million in the first quarter of 2023 (Q1 2022: €2,130.3 million) despite revenue increasing by 1.7 percent. The gross margin therefore improved to 23.1 percent (Q1 2022: 22.1 percent). This was partly down to the success of the operational measures that the Group had put in place in 2022 in response to the disruptions to supply chains and substantial cost pressures. In addition, the price increases implemented in the Industrial Trucks & Services segment in the prior year began to take effect earlier than expected as a result of newer orders being brought forward.

At 7.7 percent, the year-on-year increase in selling and administrative expenses was greater than the growth in revenue. This disproportionate rise in costs was due not only to the increase in personnel expenses in connection with variable remuneration components but also to the intensification of sales activities and the KION Group's strategic projects in procurement and IT. Research and development expenditure was up by a significant 16.4 percent in connection with the KION 2027 strategy. New energy, automation, and digitalization continued to be the main areas of focus for this forward-thinking approach.

Purchase price allocation effects included in the cost of sales and in other functional costs were slightly higher than in the first quarter of 2022 owing to currency effects. The 'other' item amounted to income of €8.2 million (Q1 2022: expense of €5.1 million). The prior-year figure had mainly related to impairment losses on non-current assets in connection with the business in Russia. The share of profit (loss) of equity-accounted investments amounted to a profit of €0.1 million in the reporting period (Q1 2022: profit of €2.7 million).

The change in the cost of sales and in other functional costs is shown in the following condensed income statement.

	Q1	Q1
in € million	2023	2022	Change
Revenue	2,781.0	2,734.5	1.7%
Cost of sales	–2,137.4	–2,130.3	–0.3%
Gross profit	643.6	604.2	6.5%
Selling expenses and administrative expenses	–467.7	–434.4	–7.7%
Research and development costs	–54.7	–47.0	–16.4%
Other	8.2	–5.1	> 100%
Earnings before interest and tax (EBIT)	129.4	117.8	9.9%
Net financial expenses	–35.7	–2.8	< –100%
Earnings before tax	93.7	115.0	–18.5%
Income taxes	–20.2	–34.8	42.1%
Net income	73.5	80.2	–8.3%

Condensed consolidated income statement

Net financial expenses

The net financial expenses, representing the balance of financial income and financial expenses, stood at €35.7 million (Q1 2022: €2.8 million). This significant deterioration in net financial expenses compared with the first quarter of the prior year was attributable to the higher level of interest rates, the marking-to-market of interest-rate derivatives, and the increase in net financial debt over the course of 2022.

Income taxes

Income tax expenses amounted to €20.2 million (Q1 2022: €34.8 million). The effective tax rate for the reporting quarter came to 21.5 percent (Q1 2022: 30.3 percent). One of the reasons for the higher rate in the prior-year period was that no deferred tax assets had been recognized in respect of negative non-recurring items relating to business in Russia.

Net income for the period

Net income for the period amounted to €73.5 million, down by €6.7 million on the figure of €80.2 million achieved in the first quarter of 2022. Basic earnings per share attributable to the shareholders of KION GROUP AG came to €0.55 (Q1 2022: €0.61) based on a weighted average of 131.1 million no-par-value shares (Q1 2022: 131.1 million).

Business situation and financial performance of the segments

Industrial Trucks & Services segment

Business performance and level of orders

Due to the slowdown in market growth, the number of new trucks ordered in the Industrial Trucks & Services segment fell by 32.0 percent compared with the prior-year quarter to 59 thousand. Order numbers had been boosted in 2022 due, for example, to the effect of customers bringing forward their purchases in response to extended shipping times resulting from the limited availability of parts and materials and to the price increases that had been announced. This meant that the figures for the reporting quarter were well down on the prior-year period, particularly in the EMEA and Americas regions. Unit sales in the APAC region also fell short of the level reached in the first quarter of 2022.

The value of order intake decreased year on year by 6.0 percent to €1,956.5 million (Q1 2022: €2,082.1 million). In the new truck business, the decline in the number of units sold was partly offset by the price increases. There was a significant increase in the value of order intake in the service business, driven mainly by the aftersales and rental businesses.

Key figures – Industrial Trucks & Services

in € million	Q1 2023	Q1 2022	Change
Total revenue	2,004.8	1,718.4	16.7%
EBITDA	382.2	294.2	29.9%
Adjusted EBITDA	383.5	310.1	23.7%
EBIT	173.6	85.3	> 100%
Adjusted EBIT	176.6	114.2	54.6%
Adjusted EBITDA margin	19.1%	18.0%	–
Adjusted EBIT margin	8.8%	6.6%	–
Order intake	1,956.5	2,082.1	–6.0%
Order book1	3,756.6	3,817.6	–1.6%

1 Figures as at Mar. 31, 2023 compared with Dec. 31, 2022

Revenue

Total revenue in the ITS segment was up by 16.7 percent to €2,004.8 million (Q1 2022: €1,718.4 million). The segment continued to work through the sizeable order book built up in the prior year, which was among the factors that had a positive impact on its revenue growth. This meant it was possible, in the first quarter of 2023, to ship a further tranche of unfinished trucks for which only a few components were missing. The dynamic price increases implemented in 2022 also began to boost revenue growth earlier than expected as a result of newer orders being brought forward. The disruption to supply chains and the associated shortages of bought-in parts and components were still a factor during the period under review, but the effects were much less pronounced. The service business grew by 10.5 percent thanks mainly to the increase in the volume of revenue generated by the aftersales and rental businesses.

At 49.4 percent, the proportion of the segment's external revenue attributable to the service business was lower than in the prior-year period (Q1 2022: 52.2 percent).

Earnings

Adjusted EBIT for the ITS segment rose sharply to €176.6 million (Q1 2022: €114.2 million). This was influenced both by the positive effect on earnings resulting from the growth in revenue and by the improved efficiency of production thanks to the countermeasures introduced.

The adjusted EBIT margin rose to 8.8 percent and was therefore well above the equivalent figure for the first three months of the prior year (Q1 2022: 6.6 percent).

After taking into account non-recurring items and purchase price allocation effects, EBIT increased to €173.6 million (Q1 2022: €85.3 million). In the prior-year period, EBIT had included an expense of €28.4 million for non-recurring items that mainly related to impairment losses on assets of the Russian subsidiaries. Adjusted EBITDA amounted to €383.5 million in the first three months of 2023

(Q1 2022: €310.1 million), giving an adjusted EBITDA margin of 19.1 percent (Q1 2022: 18.0 percent).

Supply Chain Solutions segment

Business performance and level of orders

At €497.5 million, the value of order intake in the Supply Chain Solutions segment was considerably lower than the figure for the prior-year period (Q1 2022: €843.2 million). The ongoing normalization of growth in the market for supply chain solutions resulted in a sharp decline in order intake in the project business (business solutions). In addition, the continued unwillingness of customers to make capital expenditure decisions resulted in them putting back new orders. The reduction in the project business, which affected both the core North America market and the EMEA region, was only offset to a minor extent by a further encouraging rise in orders in the service business (customer services).

	Q1	Q1
in € million	2023	2022	Change
Total revenue	782.5	1,019.8	–23.3%
EBITDA	26.9	92.5	–70.9%
Adjusted EBITDA	27.7	92.7	–70.1%
EBIT	–15.9	52.2	< –100%
Adjusted EBIT	7.1	74.0	–90.4%
Adjusted EBITDA margin	3.5%	9.1%	–
Adjusted EBIT margin	0.9%	7.3%	–
Order intake	497.5	843.2	–41.0%
Order book¹	3,000.3	3,327.5	–9.8%

Key figures – Supply Chain Solutions

1 Figures as at Mar. 31, 2023 compared with Dec. 31, 2022

Revenue

The total revenue of the Supply Chain Solutions segment came to €782.5 million in the first quarter of 2023, a substantial drop of 23.3 percent on the figure for the prior-year period (Q1 2022: €1,019.8 million). This was mainly due to the expected significant impact on revenue growth in the reporting quarter resulting from the decline in order intake in the project business (business solutions) in previous quarters. By contrast, revenue in the service business (customer services) rose sharply by 20.3 percent relative to the prior-year period. The proportion of the segment's external revenue accounted for by the service business came to 31.6 percent (Q1 2022: 20.1 percent).

Earnings

The adjusted EBIT of the Supply Chain Solutions segment fell sharply to €7.1 million in the first quarter of 2023 (Q1 2022: €74.0 million). However, this still represented a return to profitable territory following the loss reported in 2022. The segment's quarterly results were weak because it was working through generally lower-margin orders from the order book, because projects were delayed by a lack of bought-in parts, and because of the persistent shortage of skilled workers, particularly in North America.

The adjusted EBIT margin for the reporting quarter stood at 0.9 percent (Q1 2022: 7.3 percent). After taking into account non-recurring items and purchase price allocation effects, EBIT amounted to minus €15.9 million (Q1 2022: €52.2 million).

Adjusted EBITDA decreased to €27.7 million (Q1 2022: €92.7 million). The adjusted EBITDA margin was 3.5 percent (Q1 2022: 9.1 percent).

Corporate Services segment

Business performance

The Corporate Services segment comprises holding companies and other service companies that provide services such as IT and general administration across all segments.

Revenue and earnings

Total segment revenue increased year on year to €59.7 million (Q1 2022: €52.7 million).

Adjusted EBIT for the segment came to minus €28.0 million (Q1 2022: minus €4.6 million). Excluding internal income from equity investments, adjusted EBIT stood at minus €28.0 million, which was well below the figure for the prior-year period of minus €17.9 million. This was due to expenditure on strategic projects and an increase in personnel expenses in connection with variable remuneration components. Adjusted EBITDA stood at minus €21.8 million (Q1 2022: €1.6 million) or minus €21.8 million (Q1 2022: minus €11.7 million) if intra-group income from equity investments is excluded.

Key figures – Corporate Services

in € million	Q1 2023	Q1 2022	Change
Total revenue	59.7	52.7	13.3%
EBITDA	–22.3	–0.3	< –100%
Adjusted EBITDA	–21.8	1.6	< –100%
EBIT	–28.5	–6.4	< –100%
Adjusted EBIT	–28.0	–4.6	< –100%
Order intake	59.7	52.7	13.3%

Net assets

The condensed consolidated statement of financial position as at March 31, 2023 showing current and non-current assets and liabilities together with equity is presented below:

	Mar. 31,		Dec. 31,
in € million	2023	in %	2022	in %	Change
Non-current assets	11,443.5	67.7%	11,412.6	69.0%	0.3%
Current assets	5,460.3	32.3%	5,115.8	31.0%	6.7%
Total assets	16,903.9	100.0%	16,528.4	100.0%	2.3%
Equity	5,652.3	33.4%	5,607.8	33.9%	0.8%
Non-current liabilities	5,916.0	35.0%	6,040.8	36.5%	–2.1%
Current liabilities	5,335.6	31.6%	4,879.9	29.5%	9.3%
Total equity and liabilities	16,903.9	100.0%	16,528.4	100.0%	2.3%

Condensed consolidated statement of financial position

Totaling €11,443.5 million, non-current assets as at March 31, 2023 were slightly higher than at the end of 2022 (December 31, 2022: €11,412.6 million). The carrying amount of intangible assets was €5,735.3 million (December 31, 2022: €5,781.6 million). Of this sum, €3,597.2 million was attributable to goodwill (December 31, 2022: €3,619.4 million). The entire decrease of €22.2 million in the carrying amount of goodwill was due to exchange-rate movements. Other property, plant, and equipment rose slightly to €1,594.2 million (December 31, 2022: €1,585.2 million). This included right-of-use assets related to procurement leases, which were up a little compared with the end of the previous year, standing at €552.1 million as at March 31, 2023 (December 31, 2022: €543.5 million). Of this figure, €456.8 million was attributable to land and buildings (December 31, 2022: €445.7 million) and €95.3 million to plant & machinery and office furniture & equipment (December 31, 2022: €97.9 million).

The rental assets from the short-term rental business recognized in the statement of financial position were up slightly at €615.0 million as at the reporting date (December 31, 2022: €602.1 million). Leased assets for direct and indirect leases with end customers that are classified as operating leases stood at €1,371.1 million and so remained at roughly the same level as at the end of the prior year (December 31, 2022: €1,367.7 million). Long-term lease receivables arising from leases with end customers that are classified as finance leases experienced a moderate increase to €1,424.6 million (December 31, 2022: €1,370.5 million).

Current assets rose to a total of €5,460.3 million (December 31, 2022: €5,115.8 million). The ITS segment continued to maintain buffer inventories of raw materials and bought-in components during the reporting quarter, despite the increasing normalization of the supply chain situation, whereas the carrying amount of the work in process held steady at around the same level as at the end of 2022. Total inventories increased to €1,948.6 million as at March 31, 2023 (December 31, 2022: €1,804.6 million), due in part to higher inventories of finished goods as at the reporting date.

Trade receivables amounted to €1,637.9 million, which was slightly higher than at the end of 2022 (December 31, 2022: €1,596.4 million). Contract assets, which are mainly recognized in connection with the project business in the Supply Chain Solutions segment, grew to €597.6 million (December 31, 2022: €528.8 million).

At €1,985.7 million, the KION Group's net working capital was marginally above the equivalent figure for the end of 2022 (December 31, 2022: €1,979.3 million). The growth of inventories, contract balances, and trade receivables was largely offset by a significant rise in trade payables.

Current lease receivables from end customers increased from €519.8 million as at December 31, 2022 to €538.9 million as at March 31, 2023.

The encouragingly sharp rise in free cash flow in the first quarter of 2023 pushed cash and cash equivalents up to €352.7 million (December 31, 2022: €318.1 million).

Financial position

The principles and objectives applicable to financial management as at March 31, 2023 were largely the same as those described in the 2022 combined management report.

Analysis of capital structure

Non-current and current liabilities amounted to €11,251.6 million as at March 31, 2023, which was €330.9 million higher than the figure as at December 31, 2022 of €10,920.7 million.

Non-current and current financial liabilities fell slightly to €1,966.4 million (December 31, 2022: €1,988.6 million). Non-current financial liabilities stood at €1,162.8 million (December 31, 2022: €1,361.8 million). The carrying amount of the corporate bond issued, which is included in this line item, amounted to €497.1 million (December 31, 2022: €496.8 million). In addition to the non-current promissory notes, which had a carrying amount of €319.6 million (December 31, 2022: €319.2 million), non-current financial liabilities mainly comprised liabilities to banks, which fell to €325.4 million for maturity-related reasons (December 31, 2022: €515.1 million).

Current financial liabilities totaled €803.7 million as at March 31, 2023 (December 31, 2022: €626.7 million), of which €338.5 million represented issuances under the commercial paper program (December 31, 2022: €305.0 million). Current liabilities to banks rose to €448.6 million for maturity-related reasons (December 31, 2022: €304.2 million).

Net financial debt (non-current and current financial liabilities less cash and cash equivalents) amounted to €1,613.7 million as at the reporting date (December 31, 2022: €1,670.5 million). This equated to 1.3 times adjusted EBITDA on an annualized basis (December 31, 2022: 1.4 times). To reconcile the net financial debt with the industrial net operating debt of €2,758.3 million as at March 31, 2023 (December 31, 2022: €2,799.7 million), the liabilities from the short-term rental business of €553.8 million (December 31, 2022: €544.2 million) and the liabilities from procurement leases of €590.8 million (December 31, 2022: €584.9 million) are added to net financial debt.

	Mar. 31,	Dec. 31,
in € million	2023	2022	Change
Promissory notes	319.6	319.2	0.1%
Bonds	497.1	496.8	0.1%
Liabilities to banks	774.0	819.3	–5.5%
Other financial debt	375.7	353.3	6.4%
Financial debt	1,966.4	1,988.6	–1.1%
Less cash and cash equivalents	–352.7	–318.1	–10.9%
Net financial debt	1,613.7	1,670.5	–3.4%
Liabilities from short-term rental business	553.8	544.2	1.8%
Liabilities from procurement leases	590.8	584.9	1.0%
Industrial net operating debt (INOD)	2,758.3	2,799.7	–1.5%
Net defined benefit obligation	629.2	618.9	1.7%
Industrial net debt (IND)	3,387.5	3,418.5	–0.9%
Adjusted EBITDA1 (LTM)	1,217.3	1,218.7	–0.1%
Leverage on net financial debt	1.3	1.4	–3.3%
Leverage on INOD	2.3	2.3	–1.4%
Leverage on IND	2.8	2.8	–0.8%

Industrial net debt

1 Adjusted for PPA items and non-recurring items

Non-current and current liabilities from the lease business came to €3,288.6 million as at March 31, 2023 (December 31, 2022: €3,214.6 million). Of this total, €3,132.1 million was attributable to financing of the direct lease business (December 31, 2022: €3,048.4 million) and €156.5 million to the repurchase obligations resulting from the indirect lease business (December 31, 2022: €166.3 million).

Non-current and current liabilities from the short-term rental business totaled €553.8 million (December 31, 2022: €544.2 million).

Non-current and current other financial liabilities stood at €710.1 million as at March 31, 2023 (December 31, 2022: €693.7 million). This item included liabilities from procurement leases amounting to €590.8 million (December 31, 2022: €584.9 million), for which right-of-use assets were recorded.

Contract liabilities, which mainly relate to prepayments received from customers in connection with the long-term project business in the Supply Chain Solutions segment, increased to €875.0 million (December 31, 2022: €826.1 million).

There was a moderate rise in the retirement benefit obligation and similar obligations under defined benefit pension plans to €731.2 million as at March 31, 2023 (December 31, 2022: €712.8 million). This was due to slightly lower discount rates compared with the end of 2022.

Consolidated equity went up by €44.5 million to €5,652.3 million as at March 31, 2023 (December 31, 2022: €5,607.8 million). The net income of €73.5 million earned during the first quarter of 2023 had a positive impact on equity, whereas there was a negative impact on equity from actuarial gains and losses arising from the measurement of pensions, amounting to a net loss of €5.0 million (after deferred taxes), and from the currency translation losses of €27.9 million, both of which were recognized in other comprehensive income. The equity ratio fell slightly to 33.4 percent (December 31, 2022: 33.9 percent).

Analysis of capital expenditure

The KION Group's capital expenditure on property, plant, and equipment and on intangible assets in the quarter under review (excluding right-of-use assets from procurement leases) gave rise to cash payments of €75.4 million (Q1 2022: €81.4 million). The focus in the Industrial Trucks & Services segment was on the expansion and modernization of production and technology facilities. Capital expenditure in the Supply Chain Solutions segment predominantly related to development costs and the construction of a new plant for supply chain solutions in the Chinese city of Jinan, Shandong province.

Analysis of liquidity

Cash and cash equivalents increased to €352.7 million as at March 31, 2023 (December 31, 2022: €318.1 million).

Taking into account the credit facility of €1,376.7 million that was still freely available (December 31, 2022: €1,271.1 million), the unrestricted cash and cash equivalents available to the KION Group as at March 31, 2023 amounted to €1,717.1 million (December 31, 2022: €1,577.3 million).

Net cash provided by operating activities amounted to €172.9 million in the first quarter of 2023, a significant improvement on the net cash outflow of minus €354.9 million in the prior-year period. This was due not only to the improvement in EBIT but also, in particular, to the much less pronounced rise in net working capital compared with the first quarter of 2022 – supported by an increasing easing of the supply chain situation.

Net cash used for investing activities amounted to minus €68.0 million in the first quarter of 2023, which was a lower amount than in the equivalent period of the prior year (Q1 2022:

minus €77.8 million). Within this total, cash payments for capital expenditure on production facilities, product development, and purchased property, plant, and equipment came to minus €75.4 million (Q1 2022: minus €81.4 million).

Free cash flow – the sum of cash flow from operating activities and investing activities – improved significantly to €104.9 million as a result (Q1 2022: minus €432.6 million).

Net cash used for financing activities amounted to minus €71.2 million in the quarter under review (Q1 2022: net cash provided of €326.9 million). Additions to and repayments of financial debt mainly related to current payments under the commercial paper program and repayment of amounts under the syndicated revolving credit facility (RCF). Payments made for interest portions and principal portions under procurement leases totaled minus €41.9 million (Q1 2022: minus €37.7 million). Current interest payments amounted to minus €8.0 million (Q1 2022: minus €4.3 million).

in € million Q1 2023 Q1 2022 Change EBIT 129.4 117.8 9.9% + Amortization/depreciation1 on non-current assets (without lease and rental assets) 118.5 111.9 5.9% + Net changes from lease business (including depreciation1 and release of deferred income) –9.4 –10.2 7.6% + Net changes from short-term rental business (including depreciation1 ) –4.9 –16.8 71.1% + Changes in net working capital –11.4 –433.8 97.4% + Taxes paid –35.8 –37.9 5.5% + Other –13.6 –85.9 84.1% = Cash flow from operating activities 172.9 –354.9 > 100% + Cash flow from investing activities –68.0 –77.8 12.6% thereof changes from acquisitions – – – thereof changes from other investing activities –68.0 –77.8 12.6% = Free cash flow 104.9 –432.6 > 100% + Cash flow from financing activities –71.2 326.9 < –100% + Effect of exchange rate changes on cash –2.0 6.3 < –100% = Change in cash and cash equivalents 31.7 –99.4 > 100%

Condensed consolidated statement of cash flows

1 Including impairment and reversals of impairment

Outlook

The KION Group has made a strong start to 2023. The business performance of the Industrial Trucks & Services segment was much better than expected. The improving supply chain situation meant that production and delivery could be ramped up, which allowed the sizeable order book built up in 2022 to be worked through at a faster pace. The resulting effects of newer orders being brought forward are likely to continue to have a positive impact on revenue and adjusted EBIT in the Industrial Trucks & Services segment over the remainder of the year. The Supply Chain Solutions segment is expected to see a noticeable increase in revenue and an improvement in adjusted EBIT, especially in the second half of 2023, thanks to a growing proportion of higher-margin customer projects in the order book.

On April 19, 2023, the Executive Board of KION GROUP AG therefore revised, as shown below, the target figures for 2023 that it had published in the outlook section of the 2022 annual report for the Group and the Industrial Trucks & Services segment; the target figures for the Supply Chain Solutions segment remain unchanged:

Outlook 2023

	KION Group		Industrial Trucks & Services		Supply Chain Solutions
	Outlook 2023 adjusted	Outlook 2023	Outlook 2023 adjusted	Outlook 2023	Outlook 2023 unchanged	Outlook 2023
Revenue1	minimum €11.2 billion	minimum €11.0 billion	minimum €8.0 billion	minimum €7.8 billion	minimum €3.2 billion	minimum €3.2 billion
Adjusted EBIT1	minimum €615 million	minimum €550 million	minimum €665 million	minimum €600 million	minimum €65 million	minimum €65 million
Free cash flow	minimum €565 million	minimum €500 million	–	–	–	–
ROCE	minimum 5.5%	minimum 5.0%	–	–	–	–

1 Disclosures for the Industrial Trucks & Services and Supply Chain Solutions segments also include intra-group cross-segment revenue and effects on EBIT

The KION Group's overall risk and opportunity situation has not changed significantly compared with the description in the 2022 combined management report. As things stand at present, there are no indications of any risks that could jeopardize the Company's continuation as a going concern.

Financial information

Consolidated income statement

	Q1	Q1
in € million	2023	2022
Revenue	2,781.0	2,734.5
Cost of sales	–2,137.4	–2,130.3
Gross profit	643.6	604.2
Selling expenses	–283.7	–274.1
Research and development costs	–54.7	–47.0
Administrative expenses	–184.0	–160.3
Other income	48.9	39.3
Other expenses	–40.8	–47.0
Profit from equity-accounted investments	0.1	2.7
Earnings before interest and tax	129.4	117.8
Financial income	55.4	72.5
Financial expenses	–91.1	–75.3
Net financial expenses	–35.7	–2.8
Earnings before tax	93.7	115.0
Income taxes	–20.2	–34.8
Current taxes	–47.4	–37.6
Deferred taxes	27.2	2.8
Net income	73.5	80.2
Attributable to shareholders of KION GROUP AG	72.1	79.5
Attributable to non-controlling interests	1.4	0.7
Earnings per share
Average number of shares (in million)	131.1	131.1
Basic earnings per share (in €)	0.55	0.61
Diluted earnings per share (in €)	0.55	0.61

Consolidated statement of comprehensive income

	Q1	Q1
in € million	2023	2022
Net income	73.5	80.2
Items that will not be reclassified subsequently to profit or loss	–4.1	130.5
Gains/losses on defined benefit obligation	–5.0	129.2
thereof changes in unrealized gains and losses	–7.2	183.9
thereof tax effect	2.2	–54.7
Changes in unrealized gains/losses on financial investments	0.3	–0.0
Changes in unrealized gains/losses from equity-accounted investments	0.6	1.3
Items that may be reclassified subsequently to profit or loss	–25.0	93.1
Impact of exchange differences	–27.9	91.2
thereof changes in unrealized gains and losses	–27.9	91.2
thereof realized gains (–) and losses (+)	–	–
Gains/losses on hedge reserves	3.0	1.7
thereof changes in unrealized gains and losses	5.5	–1.5
thereof realized gains (–) and losses (+)	–1.3	3.5
thereof tax effect	–1.3	–0.3
Changes in unrealized gains/losses from equity-accounted investments	–0.0	0.2
Other comprehensive (loss) income	–29.1	223.6
Total comprehensive income	44.4	303.8
Attributable to shareholders of KION GROUP AG	43.1	302.4
Attributable to non-controlling interests	1.4	1.4

Consolidated statement of financial position – Assets

in € million	Mar. 31, 2023	Dec. 31, 2022
Goodwill	3,597.2	3,619.4
Other intangible assets	2,138.1	2,162.1
Leased assets	1,371.1	1,367.7
Rental assets	615.0	602.1
Other property, plant and equipment	1,594.2	1,585.2
Equity-accounted investments	95.4	94.7
Lease receivables	1,424.6	1,370.5
Other financial assets	167.6	179.0
Other assets	130.6	131.1
Deferred taxes	309.7	300.8
Non-current assets	11,443.5	11,412.6
Inventories	1,948.6	1,804.6
Lease receivables	538.9	519.8
Contract assets	597.6	528.8
Trade receivables	1,637.9	1,596.4
Income tax receivables	92.9	103.2
Other financial assets	75.6	80.3
Other assets	191.5	137.3
Cash and cash equivalents	352.7	318.1
Assets held for sale	24.6	27.4
Current assets	5,460.3	5,115.8
Total assets	16,903.9	16,528.4

Consolidated statement of financial position – Equity and liabilities

in € million	Mar. 31, 2023	Dec. 31, 2022
Subscribed capital	131.1	131.1
Capital reserve	3,826.7	3,826.7
Retained earnings	1,672.7	1,600.5
Accumulated other comprehensive income	21.3	50.3
Non-controlling interests	0.4	–0.9
Equity	5,652.3	5,607.8
Retirement benefit obligation and similar obligations	731.2	712.8
Financial liabilities	1,162.8	1,361.8
Liabilities from lease business	2,358.1	2,314.2
Liabilities from short-term rental business	369.4	354.1
Other provisions	157.5	140.8
Other financial liabilities	485.1	478.3
Other liabilities	179.7	185.9
Deferred taxes	472.3	492.8
Non-current liabilities	5,916.0	6,040.8
Financial liabilities	803.7	626.7
Liabilities from lease business	930.5	900.4
Liabilities from short-term rental business	184.4	190.1
Contract liabilities	875.0	826.1
Trade payables	1,323.3	1,124.3
Income tax liabilities	44.4	42.4
Other provisions	210.2	229.4
Other financial liabilities	225.0	215.4
Other liabilities	714.8	697.8
Liabilities directly associated with assets held for sale	24.4	27.2
Current liabilities	5,335.6	4,879.9
Total equity and liabilities	16,903.9	16,528.4

Consolidated statement of cash flows

in € million	Q1 2023	Q1 2022
Earnings before interest and tax	129.4	117.8
Amortization, depreciation and impairment minus reversals of impairment on non-current assets without lease and rental assets	118.5	111.9
Depreciation and impairment minus reversals of impairment on lease and rental assets	139.1	143.4
Non-cash reversals of deferred revenue from lease business	–24.7	–31.6
Other non-cash income (–)/expenses (+)	6.7	8.9
Gains (–)/losses (+) on disposal of non-current assets	–2.4	–0.6
Change in leased assets (excluding depreciation) and receivables/ liabilities from lease business	–69.8	–67.2
Change in rental assets (excluding depreciation) and liabilities from short-term rental business	–58.8	–71.6
Change in net working capital	–11.4	–433.8
thereof inventories	–148.1	–237.8
thereof trade receivables and trade payables	154.7	–81.4
thereof contract assets and contract liabilities	–18.0	–114.6
Cash payments for defined benefit obligations	–6.6	–6.0
Change in other provisions	–2.3	–33.9
Change in other operating assets/liabilities	–9.1	–54.3
Taxes paid	–35.8	–37.9
Cash flow from operating activities	172.9	–354.9
Cash payments for purchase of non-current assets	–75.4	–81.4
Cash receipts from disposal of non-current assets	4.6	1.2
Dividends received	0.0	2.4
Cash receipts/payments for sundry assets	2.8	0.1
Cash flow from investing activities	–68.0	–77.8

Consolidated statement of cash flows (continued)

	Q1	Q1
in € million	2023	2022
Financing costs paid	–0.7	–0.5
Proceeds from borrowings	178.9	395.5
Repayment of borrowings	–201.1	–28.2
Interest received	1.6	1.0
Interest paid	–8.0	–4.3
Interest and principal portion from procurement leases	–41.9	–37.7
Cash receipts/payments from other financing activities	0.0	1.2
Cash flow from financing activities	–71.2	326.9
Effect of exchange rate changes on cash and cash equivalents	–2.0	6.3
Change in cash and cash equivalents	31.7	–99.4
Cash and cash equivalents at the beginning of the period	318.1	483.0
Cash and cash equivalents at the end of the period	349.8	383.6
Plus cash and cash equivalents included in assets held for sale
at the beginning of the period	14.1	–
Less cash and cash equivalents included in assets held for sale
at the end of the period	–11.2	–
Cash and cash equivalents at the end of the period
(Consolidated statement of financial position)	352.7	383.6

The Executive Board, as the chief operating decision-maker (CODM), manages the KION Group on the basis of the following segments: Industrial Trucks & Services, Supply Chain Solutions, and Corporate Services. The segments have been defined in accordance with the KION Group's organizational and strategic focus.

The KPIs used to manage the segments are revenue and adjusted EBIT. Segment reporting therefore includes a reconciliation of externally reported consolidated earnings before interest and tax (EBIT) – including effects from purchase price allocations and non-recurring items – to the adjusted EBIT for the segments.

The following tables show information on the KION Group's operating segments for the first quarter of 2023 and for the first quarter of 2022.

in € million	Industrial Trucks & Services	Supply Chain Solutions	Corporate Services	Consoli dation/ Reconci liation	Total
Revenue from external customers	2,002.8	777.8	0.4	–	2,781.0
Intersegment revenue	2.0	4.7	59.3	–66.0	–
Total revenue	2,004.8	782.5	59.7	–66.0	2,781.0
Earnings before tax	154.5	–21.0	–40.1	0.3	93.7
Net financial expenses	–19.1	–5.0	–11.6	–	–35.7
EBIT	173.6	–15.9	–28.5	0.3	129.4
+ Non-recurring items	–0.1	0.8	0.5	–	1.2
+ PPA items	3.1	22.3	–	–	25.4
= Adjusted EBIT	176.6	7.1	–28.0	0.3	156.0
Segment assets	12,313.2	5,754.0	2,444.2	–3,607.6	16,903.9
Segment liabilities	8,396.5	2,876.4	3,586.1	–3,607.4	11,251.6
Capital expenditure1	41.0	22.6	11.8	–	75.4
Amortization and depreciation2	40.6	13.1	4.5	–	58.2
Order intake	1,956.5	497.5	59.7	–69.4	2,444.3
Order book	3,756.6	3,000.3	–	–70.2	6,686.6
Number of employees3	28,927	11,005	1,264	–	41,196

Segment information Q1 2023

1 Capital expenditure in property, plant and equipment and intangible assets, including capitalized development costs

2 On intangible assets and property, plant and equipment (excluding right-of-use assets and PPA items)

3 Number of employees (full-time equivalents) as at Mar. 31, 2023; allocation according to the contractual relationships

Segment information Q1 2022

in € million	Industrial Trucks & Services	Supply Chain Solutions	Corporate Services	Consoli dation/ Reconci liation	Total
Revenue from external customers	1,716.3	1,017.7	0.5	–	2,734.5
Intersegment revenue	2.1	2.1	52.1	–56.4	–
Total revenue	1,718.4	1,019.8	52.7	–56.4	2,734.5
Earnings before tax	89.3	43.0	–3.9	–13.4	115.0
Net financial income/expenses	3.9	–9.2	2.5	–	–2.8
EBIT	85.3	52.2	–6.4	–13.4	117.8
+ Non-recurring items	28.4	0.2	1.9	–	30.5
+ PPA items	0.4	21.6	–	–	22.1
= Adjusted EBIT	114.2	74.0	–4.6	–13.4	170.3
Segment assets	11,846.8	6,245.9	2,335.7	–4,079.8	16,348.7
Segment liabilities	8,238.6	3,081.9	3,634.0	–4,079.3	10,875.2
Capital expenditure1	57.7	19.7	4.1	–	81.4
Amortization and depreciation2	38.9	11.8	4.0	–	54.6
Order intake	2,082.1	843.2	52.7	–77.9	2,900.1
Order book	3,192.8	3,695.4	–	–33.6	6,854.6
Number of employees3	27,921	11,491	1,107	–	40,519

1 Capital expenditure in property, plant and equipment and intangible assets, including capitalized development costs

2 On intangible assets and property, plant and equipment (excluding right-of-use assets and PPA items)

3 Number of employees (full-time equivalents) as at Mar. 31, 2022; allocation according to the contractual relationships

Frankfurt am Main, April 26, 2023

The Executive Board

Quarterly information

KION Group quarterly information1

in € million	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021	2022	2021
Total revenue	2,781.0	2,892.5	2,706.4	2,802.2	2,734.5	2,760.6	11,135.6	10,294.3
Industrial Trucks & Services	2,004.8	2,067.8	1,838.9	1,731.0	1,718.4	1,764.2	7,356.1	6,514.0
Supply Chain Solutions	782.5	836.5	874.4	1,076.2	1,019.8	1,001.9	3,806.9	3,796.2
Gross profit (adjusted)	653.2	565.4	390.1	597.0	621.7	605.4	2,174.1	2,536.2
Industrial Trucks & Services	544.0	478.6	451.7	415.9	440.5	427.2	1,786.7	1,751.2
Supply Chain Solutions	113.2	98.6	–52.2	187.1	173.2	179.0	406.6	781.3
Selling expenses and administrative expenses (adjusted)	–452.3	–445.0	–438.3	–417.4	–413.3	–411.9	–1,714.0	–1,545.3
Industrial Trucks & Services	–338.4	–337.0	–319.0	–312.0	–303.4	–289.7	–1,271.4	–1,125.6
Supply Chain Solutions	–92.7	–97.8	–106.3	–94.6	–84.9	–90.7	–383.7	–318.7
Research and development costs (adjusted)	–54.7	–58.0	–49.9	–49.4	–47.0	–50.6	–204.3	–178.7
Industrial Trucks & Services	–39.1	–40.2	–31.5	–30.4	–30.0	–30.7	–132.1	–119.5
Supply Chain Solutions	–13.9	–16.7	–16.7	–17.5	–15.1	–16.6	–66.0	–51.7
Other costs (adjusted)	9.8	19.4	–2.9	11.2	8.9	7.8	36.6	29.7
Industrial Trucks & Services	10.0	18.6	1.4	10.2	7.1	6.1	37.4	29.9
Supply Chain Solutions	0.6	2.6	–6.8	0.8	0.8	1.2	–2.6	–1.3
Adjusted EBIT	156.0	81.8	–101.1	141.4	170.3	150.8	292.4	841.8
Industrial Trucks & Services	176.6	120.0	102.6	83.6	114.2	112.9	420.5	536.0
Supply Chain Solutions	7.1	–13.4	–182.0	75.8	74.0	73.0	–45.6	409.5
Adjusted EBIT margin	5.6%	2.8%	–3.7%	5.0%	6.2%	5.5%	2.6%	8.2%
Industrial Trucks & Services	8.8%	5.8%	5.6%	4.8%	6.6%	6.4%	5.7%	8.2%
Supply Chain Solutions	0.9%	–1.6%	–20.8%	7.0%	7.3%	7.3%	–1.2%	10.8%
Adjusted EBITDA	389.6	324.9	134.6	368.2	391.0	375.5	1,218.7	1,696.9
Industrial Trucks & Services	383.5	336.6	309.8	285.2	310.1	313.7	1,241.7	1,297.9
Supply Chain Solutions	27.7	6.9	–162.1	94.8	92.7	90.3	32.2	476.6
Adjusted EBITDA margin	14.0%	11.2%	5.0%	13.1%	14.3%	13.6%	10.9%	16.5%
Industrial Trucks & Services	19.1%	16.3%	16.8%	16.5%	18.0%	17.8%	16.9%	19.9%
Supply Chain Solutions	3.5%	0.8%	–18.5%	8.8%	9.1%	9.0%	0.8%	12.6%
Earnings / Loss per share
Basic earnings / loss per share (in €)	0.55	0.27	–0.73	0.60	0.61	1.08	0.75	4.34
Order intake	2,444.3	2,535.6	2,517.3	3,754.6	2,900.1	3,492.6	11,707.6	12,481.6
Industrial Trucks & Services	1,956.5	1,693.5	1,904.9	2,745.1	2,082.1	2,435.2	8,425.6	8,166.3
Supply Chain Solutions	497.5	882.3	614.4	1,022.0	843.2	1,061.9	3,361.9	4,329.4

1 Adjusted figures include adjustments for PPA items and non-recurring items

Disclaimer

Forward-looking statements

This quarterly statement contains forward-looking statements that relate to the current plans, objectives, forecasts, and estimates of the management of KION GROUP AG. These statements only take into account information that was available up to and including the date on which this quarterly statement was prepared. The management of KION GROUP AG makes no guarantee that these forward-looking statements will prove to be right. The future development of KION GROUP AG and its subsidiaries and the results that are actually achieved are subject to a variety of risks and uncertainties that could cause actual events or results to differ significantly from those reflected in the forward-looking statements. Many of these factors are beyond the control of KION GROUP AG and its subsidiaries and therefore cannot be precisely predicted. Such factors include, but are not limited to, changes in economic and industry-specific conditions, the competitive situation, and the political environment, changes in national and international law, interest-rate or exchange-rate fluctuations, legal disputes and investigations, and the availability of funds. These and other risks and uncertainties are set forth in the 2022 group management report, which has been combined with the management report of KION GROUP AG, and in this quarterly statement. However, other factors could also have an adverse effect on business performance and results. KION GROUP AG neither intends to nor assumes any separate obligation to update forward-looking statements or to change these to reflect events or developments that occur after the publication of this quarterly statement.

Rounding

Certain numbers in this quarterly statement have been rounded. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown as well as between the numbers in the tables and the numbers given in the corresponding analyses in the text of the quarterly statement. All percentage changes and key figures were calculated using the underlying data in thousands of euros (€ thousand).

Financial calendar

May 17, 2023 Annual General Meeting

July 27, 2023 Interim report for the period ended June 30, 2023 (Q2 2023), conference call for analysts

Contact information

Contacts for the media

Frank Grodzki

Vice President Corporate Communications Phone: +49 69 20 110 7496 frank.grodzki@ kiongroup.com

Christopher Spies

Senior Manager Corporate Communications Phone: +49 69 20 110 7725 christopher.spies@ kiongroup.com

Contacts for investors

Sebastian Ubert

Vice President Investor Relations Phone: +49 69 20 110 7329 sebastian.ubert@ kiongroup.com

Raj Junginger

Senior Manager Investor Relations Phone: +49 69 20 110 7942 raj.junginger@ kiongroup.com

October 26, 2023 Quarterly statement for the

period ended September 30, 2023 (Q3 2023), conference call for analysts

Subject to change without notice

Securities identification numbers

ISIN: DE000KGX8881 WKN: KGX888

KION GROUP AG Thea-Rasche-Strasse 8 60549 Frankfurt am Main Germany Phone: +49 69 20 110 0 Fax: +49 69 20 110 7690 info@kiongroup.com www.kiongroup.com

This quarterly statement is available in German and English at www.kiongroup.com.

The content of the German version is authoritative.

kiongroup.com/ ir

We keep

the world moving.

KION GROUP AG

Corporate Communications Thea-Rasche-Strasse 8 60549 Frankfurt am Main | Germany

Phone: +49 69 20 110 0 Fax: +49 69 20 110 7690 info@kiongroup.com www.kiongroup.com