Kardex : Investor Handbook

Investor Handbook

Version 6.1 - March 2022

More detailed information:

Table of contents

4 Executive summary

Kardex in brief

Intralogistics market and key trends

Strategic growth drivers for Kardex

Differentiating factors

Key financials

7 Kardex Company Profile

Introduction

Historical evolution

Group structure

Business model and group strategy

Financial targets

Kardex divisions

Acquisitions and new Ventures

Corporate Governance

Sustainability

31 Key figures and share information

Key figures at a glance

Financial highlights 2021

Consolidated balance sheet

Information on the Kardex share

Attractive dividend policy

38 Industry outlook

Intralogistics overview

Global trends and drivers impacting intralogistics

43 Competitive landscape

Competitors

Executive Summary

1. Kardex in brief

Kardex is a leading intralogistics solution provider of automated storage, retrieval and material handling systems in an attractive and growing market. With two entrepreneurially managed divisions, Kardex Remstar and Kardex Mlog, Kardex developed from a product and service supplier into a global industry partner providing solutions and services under the Kardex brand name. Kardex is well positioned to grow in a market with strong fundamentals and to achieve attractive financial returns.

Kardex has four manufacturing facilities and approximately 2'000 employees in over 30 countries worldwide.

Kardex Holding AG is listed on the SIX Swiss Exchange since 1987.

2. Intralogistics market and key trends

Storage and material handling is a key cost and efficiency factor, not only in traditional production and distribution facilities but increasingly also for service providers and for new (e.g. internet-based) business models. Many of these companies have to invest in modernizing their storage and warehouse facilities in the coming years. Companies with a manufacturing or distribution basis in high cost countries in Central Europe have been the main drivers of the automation trend. The rest of Europe, North America and increasingly also Asia/Pacific and South America are following this trend.

There are a lot of global trends that are causing change to the industry. These trends relate to core technologies as well as the way how B2B and B2C transactions are handled. Most of these trends will therefore either directly or indirectly also have an impact on the intralogistics solution providers and their customers. The biggest impact will be in the transactions and ways of interaction with customers and the total information handling, which are directly related to the ever more globalized and digitalized business world. For instance the increase in e-commerce and the resulting delivery/return logistics demand more decentralized, smaller warehouses and "last mile" solutions. There will be a fundamental change in requirements to the intralogistics core technology and product portfolios with the increasing need for smart machines. In addition to embedded controls, artificial intelligence has become a commercial reality and these new technologies will serve as enablers for more efficient solu- tions.

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Executive Summary

3. Strategic growth drivers for Kardex

Kardex has defined three strategic drivers to exploit further growth and profit opportunities:

• Geographical expansion
• Leverage existing customer base
• Focus on target industry segments

The main geographic growth will be based on an increased market penetration in regions such as North America and Asia. In addition, Kardex will leverage its strong position and large installed base in the current markets to generate additional sales with existing customers through an extended solution and service offering. To further broaden the revenue streams, Kardex will further exploit existing and develop additional industry segments with existing standard solutions or new industry specific so- lutions.

4. Differentiating factors

Strong market position

Kardex Remstar is a global market leader for dynamic storage, retrieval and material handling solu- tions. Kardex Mlog has a leading position in Central Europe for stacker cranes, conveyor systems and automated material handling systems. The two divisions are unified under a strong group brand.

Large installed base and strong service network

With over 140'000 installed Kardex Remstar machines and over 1'000 Kardex Mlog warehouse sys- tems, the Group has a broad existing customer base that counts on first-classafter-sales services. Furthermore, many of these customers must and will upgrade their systems to further increase effi- ciency. Kardex is well positioned to benefit from these modernization needs.

Industry specific solutions

Both divisions strive to become subject matter experts about trends, pains and logistics requirements in selected Industry segments. Developing to this expert level will enable Kardex to offer industry specific solutions for the various segments which are enjoying a rising demand.

Global footprint

Kardex's global footprint offers a strong basis to provide sales and service worldwide and to partially mitigate the risk of local or regional downturns.

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