DGAP-News: KION GROUP AG / Key word(s): Annual Report/Annual Results
KION Group records best order intake in its history (news with additional features)
2021-03-02 / 06:54
The issuer is solely responsible for the content of this announcement.
KION Group records best order intake in its history
- Further course set for future global growth
- Outlook for 2020 achieved
- Order intake up by 3.6 percent to a record EUR9.443 billion
- Order book expands by a substantial 22.3 percent to EUR4.441 billion
- Revenue decreases by 5.3 percent to EUR8.342 billion
- Adjusted EBIT falls to EUR546.9 million
- Net income remains well into positive territory at EUR210.9 million despite the pandemic
- Free cash flow amounts to EUR120.9 million
- Proposed dividend of EUR0.41 per share
- CEO Riske: "Opportunities seized in 2020"
Frankfurt am Main, March 2, 2021 - The 2020 financial year will go down in history as the year of coronavirus. In a
completely changed and extremely challenging climate, the KION Group demonstrated its resilience and steered through
the pandemic relatively well. The ever-increasing importance of e-commerce and the sustained rise in demand for
material handling technologies in warehouse logistics have substantially boosted growth in the Supply Chain Solutions
business. Automation and software-driven solutions for global supply chains therefore proved to be a stabilizing factor
for the KION Group.
The positioning of the KION Group, with its two strong operating segments and clear focus on the trends of tomorrow,
proved its worth again in 2020 - a year dominated by the coronavirus pandemic. "As a full-service provider for
intralogistics with strong roots on all continents, we successfully seized our opportunities in 2020," says Gordon
Riske, Chief Executive Officer of KION GROUP AG. "Our vision is and remains very clear: At KION, we are keeping the
world moving and shaping the future of intralogistics."
The Group also used the year of the pandemic to press ahead with the implementation of its 'KION 2027' strategy:
Investment in the areas of automation, digitalization, and energy, the market launch of new products, and the expansion
of global production capacity and the sales and service network have laid the foundation stones for further profitable
global growth. "The acquisition of Digital Applications International Limited, a UK software company specializing in
warehouse logistics applications, and the partnership with the Chinese robotics specialist Shanghai Quicktron
Intelligent Technology Company Limited last year have expanded our operations in areas that will be key to future
growth," says Gordon Riske. In addition, KION's recently formed subsidiary, KION Battery Systems GmbH, a joint venture
between KION GROUP AG and BMZ Holding GmbH, went into full production of state-of-the-art lithium-ion batteries for
industrial trucks in the autumn.
Innovative strength and expansion of global production capacity
The latest developments of the strong KION brand companies embody the KION Group's capacity to innovate. Dematic has
developed a new generation of the successful Multishuttle, which increases the speed of transportation and improves
accuracy and availability in warehouses and distribution centers. The Multishuttle 2.0 is even more efficient and
reliable than its successful predecessor.
OPX iGo neo, an autonomous order picker developed by STILL, uses ultra-modern sensors to detect its surroundings,
obstacles, and distances and then makes its own decisions. This reduces picking errors and significantly increases
picking performance. The new STILL RX 60 electric forklift truck (3.5 to 5.0t load capacity) boasts impressive handling
capacity and minimal downtime. Its performance is comparable to that of an IC truck - but without the emissions.
Linde Material Handling is focusing on connectivity with its new 1202 series of H20-H35 IC counterbalance trucks. This
latest generation offers excellent performance and versatility and is robust, user-friendly, and digitally connected.
Customers can upgrade their industrial trucks with new functions, without having to replace a single hardware
To better meet global demand for our products and be closer to our customers, the Group is building two new plants for
counterbalance trucks - one in Jinan, China, and one in Kolbaskowo in Poland. The second plant in the Chinese region of
Xiamen has been in operation, manufacturing warehouse trucks, since last year. KION's subsidiary Dematic has also
recently opened new production facilities in the Czech town of Stríbro and in Kahl, in Bavaria.
Excellence in climate change mitigation
International environmental organization CDP has once again recognized the KION Group's commitment to combating climate
change. The intralogistics provider received an 'A-' rating for the first time in the latest assessment, improving on
its 'B' rating of the past two years. The rating reflects the KION Group's progress from a coordinated approach to
climate change mitigation (management level) to the implementation of the latest best practice (leadership level).
Improved funding structure
Last September, KION GROUP AG launched a corporate bond program (EMTN program) with a total volume of up to EUR3 billion
that is listed on the regulated market of the Luxembourg Stock Exchange. The first corporate bond to be issued under
the EMTN program was many times oversubscribed. The very successful capital increase in December 2020 strengthened the
KION Group's long-term funding structure and set it on course for future growth. "The fact that the response to the new
shares was so positive and that take-up of the previously issued bond was so good underlines the confidence that
shareholders and the capital markets have in our successful KION 2027 strategy," says Anke Groth, CFO of KION GROUP AG.
"We plan to use this strong financial position to forge ahead with our innovative business activities."
Outlook for the current year
Gordon Riske believes the KION Group is well positioned for 2021 and beyond. "We have an extensive and high-performance
intralogistics portfolio, a highly flexible, customer-focused sales network, and a strong balance sheet," he explains.
"Our global positioning and the strength of our service business provide us with excellent prospects for long-term
growth. The strong demand for automation solutions looks set to continue and that also gives us confidence."
However, the outlook for 2021 is particularly uncertain in view of the continued rapid spread of coronavirus at the end
of 2020. If the pandemic continues to worsen, the authorities may impose renewed restrictions that would adversely
affect procurement, production, and sales activities and make customers less willing to invest. In addition, the
International Monetary Fund estimates that prices for raw materials will rise significantly. This is also likely to
have an impact on the purchase prices of the materials used by the KION Group.
Expected sectoral conditions
In the KION Group's view, the global material handling market should see strong growth in 2021 as economic conditions
improve. The increasing buoyancy of the supply chain solutions market and the further gradual recovery of the global
market for industrial trucks are primed to be the engines of this growth. Overall, the global material handling market
is expected to grow at a faster rate than global GDP. This is primarily because of the fundamental growth drivers,
particularly the fragmentation of value chains and consumers' increasing preference for e-commerce, which the KION
Group believes has become even more important as a result of the coronavirus pandemic. Growth at regional level,
especially in the more cyclical market for industrial trucks, will again depend heavily on economic conditions in the
main sales markets.
Following the fallout from coronavirus in 2020, the KION Group is expecting new business with industrial trucks to
gradually recover in 2021, with a rise in order intake (in terms of units) that is in the mid-single-digit range and
above the medium-term growth trend of around 4 percent. This rise is expected to be driven primarily by the recovery of
the EMEA region, which was heavily affected by the pandemic in 2020, and by sustained growth in China. However, the
latter is likely to be significantly slower following the exceptionally strong growth in 2020.
The market for supply chain solutions is likely to continue expanding in 2021, particularly as a result of the
sustained uptrend in e-commerce, which was further strengthened by the changes in the way that consumers shopped during
the pandemic. The trend for micro-fulfillment warehouses is also expected to continue. From a technology perspective,
automation and robotics solutions will remain the main drivers. Market growth is expected to be into double digits in
Expected business situation and financial performance of the KION Group
The order intake of the KION Group is expected to be between EUR9,700 million and EUR10,400 million. The target figure for
consolidated revenue is in the range of EUR9,150 million to EUR9,750 million. The target range for adjusted EBIT is EUR720
million to EUR800 million. Free cash flow, including the effects of the capacity and structural program started in 2020,
is expected to be in a range between EUR450 million and EUR550 million. The target figure for ROCE is in the range of 8.2
percent to 9.2 percent.
Order intake in the Industrial Trucks & Services segment is expected to be between EUR5,900 million and EUR6,200 million.
The target figure for revenue is in the range of EUR5,900 million to EUR6,200 million. The target range for adjusted EBIT
is EUR445 million to EUR485 million.
Order intake in the Supply Chain Solutions segment is expected to be between EUR3,800 million and EUR4,200 million. The
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