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KION : Transkript

07/30/2021 | 08:40am EDT


Q2 2021 Update Call

Conference Call Transcript


15:00 CET


Gordon Riske (CEO)

Anke Groth (CFO)

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 forward-looking 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.

Page 2

KION GROUP AG Investor & Analyst Q2 2021 Update Call Transcription

Gordon Riske

Yes, thank you. Welcome to our update call for the second

quarter of 2021. As a basis for this call, we will use our Q2 2021

presentation. It's available on kiongroup.com under Investor

Relations in the Publications section.

We will be presenting as usual in four parts today and then open

up the discussion with your questions. I will begin with our

financial key figures for the first half year and then present

selected business highlights from the past quarter. This will be

followed by a market update. Anke Groth will then provide you

with a financial update. And we'll close the call with a presentation

of our outlook for the financial year 2021 before we turn it back

over to you for the Q&A.

So let's start with our key financial figures on Page 3. So overall,

during the first half of the year, the KION Group continued its

recovery after the pandemic year of 2020, and we did achieve

significantly improved KPIs compared to the same period of the

previous year.

Supported by a very strong rebound within the ITS segment, our

order intake for the group grew by 34% to €5.9 billion in the first

half of 2021. Our revenue reached €5 billion, up 26%, driven by

both operating segments, including a successful order book

conversion in SCS.

Even more pronounced was the increase in adjusted EBIT, which

reached €462 million in the first half of the year, resulting in a

great margin of 9.3%. Our free cash flow for the group improved

further and came in at €301 million.

Page 3

KION GROUP AG Investor & Analyst Q2 2021 Update Call Transcription

So in a nutshell, we saw a significantly increased profitability as well as continued strong demand that provides us with a good basis for the remainder of the year. And that is now reflected in our raised guidance.

Moving onto Page 4, let me describe a few selected highlights in the past quarter. We continued to stringently implement our 2027 Strategy and further strengthened our position through new products and an expanded footprint.

Linde introduced the new line of the Linde X20 to X35 electric forklift models with load capacities from 2 to 3.5 tons. These are the first electric Linde trucks that are comparable with the performance and robustness of Linde's IC hydrostats, while offering additional environmental benefits. They represent a real alternative for our demanding customers with high-intensity applications.

Another feature is the full truck connectivity so that these trucks offer all advantages of a digitalized industrial truck. Dematic together with our ITS brands Linde and STILL and the Digital Campus have jointly developed the Dematic conveyor ConfiKIT, an app that makes configuring a conveyor line at the customer site much easier.

The app enables our brands to implement customer requirements even faster and in an even more personalized way in the future. As such, it supports our customers at the start of their automation journey.

Last but certainly not least, we have commenced production of our forklift trucks at our new Polish plant in Kołbaskowo. The new

Page 4

KION GROUP AG Investor & Analyst Q2 2021 Update Call Transcription

plant has the size of roughly 44,000 square meters. It produces counterbalance trucks that were relocated from Western Europe to Poland and, in the coming years, will produce products localized in Xiamen, China, to speed up delivery times. We expect to invest a total of around €80 million and expect to create up to 400 new jobs by the end of the year 2023.

So let's move on now to the market update on Page 6. The focus on industrial trucks shows the global market development by region in the second quarter of 2021. After an already very strong development in the first quarter of 2021, the momentum further increased in the second quarter and resulted in a unit order intake of almost 74% compared to the pandemic-induced weak Q2 2020.

This growth was predominantly driven by core markets within EMEA and Americas based on the strong carryover effects for counterbalance trucks combined with pull-forward orders of customers in anticipation of longer production lead times based on the tight supply situation around the globe.

While Western Europe was up by 117%, unit order intake in Eastern Europe increased even stronger at 134%. In North America, the market gained further momentum, almost doubling year-on-year, thereby expanding further from the very solid level seen in the first quarter of 2021. This was primarily driven by IC trucks.

Looking at South and Central America, the market more than tripled, not only due to the low comparison base of the last year, but also due to strong demand of IC trucks.

Page 5

KION GROUP AG Investor & Analyst Q2 2021 Update Call Transcription

In China, where the market was already experiencing significant postpandemic growth during Q2 2020, unit order intake showed a slowing momentum, however, still growing at a plus of 36%.

So overall, the global market for industrial trucks reached a new record order intake level of 625,500 trucks. So 625,000 trucks is an amazing number for the first half of the year.

Page 7 shows a breakdown of KION's unit growth by regions. KION's unit order intake showed an outstanding performance and reached also a new record level of 87,900 trucks globally.

In EMEA, we saw a strong growth driven by carryover effects, pull-forward effects, but also some prebuying ahead of the announced price increase, which started in effect for July.

In our most important end market Western Europe, unit order intakes more than doubled, while Eastern Europe recorded a growth rate of 80%. However, we were lagging behind the market based on some of the ongoing strong competition of Chinese players, nonetheless a very, very strong quarter.

Looking at China, we were even able to outperform the market with a plus of 82.6%, mainly driven by new product additions and further progress in expanding our sales and service network.

Likewise, in North America, KION's unit order intake increased by more than 300% compared to the prior year based on further successful implementation of our KION 2027 Strategy, including cross-selling new products and an improved footprint.

Um den Rest dieser Noodl zu lesen, rufen Sie bitte die Originalversion auf, und zwar hier.


Kion Group AG published this content on 30 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2021 12:38:03 UTC.

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Net income 2021 502 M 587 M 587 M
Net Debt 2021 916 M 1 073 M 1 073 M
P/E ratio 2021 21,7x
Yield 2021 1,34%
Capitalization 10 765 M 12 596 M 12 600 M
EV / Sales 2021 1,17x
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Nbr of Employees 37 718
Free-Float 54,7%
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Technical analysis trends KION GROUP AG
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Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 16
Last Close Price 82,60 €
Average target price 98,44 €
Spread / Average Target 19,2%
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Managers and Directors
Gordon Riske Chief Executive Officer
Anke Groth Chief Financial Officer & Labour Director
Michael Macht Chairman-Supervisory Board
Henry Puhl Chief Technology Officer
Hans-Peter Ring Member-Supervisory Board
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