KION UPDATE CALL FY 2013 Gordon Riske, CEO Thomas Toepfer, CFO Frankfurt, 20 March 2014
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 2
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 3
2013: IPO AS STRATEGIC HIGHLIGHT Listing as historic milestone Share price performance until 19 March 2014 Current shareholder structure [€] 37.0 KION Management KION GROUP AG 36.0 0.9% 0.2% 35.0 €33.78 34.0 33.0 32.0 31.0 Free Float 31.1% 34.5% KKR and 30.0 Goldman 29.0 Sachs 28.0 27.0 First 26.0 price 25.0 €24.19 24.0 33.3% 23.0 Weichai Power KION share SDAX (normalized) 20 March 2014 | FY 2013 Update Call 4
2013: FINANCIAL HIGHLIGHTS Looking back on a very solid year Order intake close to 2012 figure Revenue on high prior year level – €4,489m; slightly down by -2.2%, mainly due to – €4,495m; down 1.4% vs. 2012 negative FX effect – Continued growth in services – Q4 order intake of €1,193m on prior year level – Negative FX and mix effects – Western European recovery in Q4 after weak first nine months – Strong performance in emerging markets Solid financial results Business stable at high levels Record level of adjusted EBIT and margin Net income reflects operating performance – €417m; up €8m vs. 2012 – 2013 net income of €138m with strong – Adjusted EBIT margin of 9.3% in 2013 operating performance (9.0% in 2012) – Positive post IPO effects only for second half – Strong performance in Q4: Adjusted EBIT rises – Net income in 2012 strongly affected by one-off to €116m; margin at record high of 9.8% gains from the sale of Hydraulics Business Note: For comparability purposes prior year figures are adjusted for the disposal of our Hydraulics Business 20 March 2014 | FY 2013 Update Call 5
2013: OPERATIONAL HIGHLIGHTS Continuation of profitable growth strategy – Business stabilized at a high level despite weak Western European market Global markets – Western Europe remains flat y-o-y but with recovery in Q4 maintain pace – Further growth in emerging markets; 35% volume share in 2013 Optimising – 20 years of Linde in China as KION’s second largest country market global footprint – Production ramp-up in new Brazilian factory and expansion of Indian plant and product – More than a dozen new trucks and truck families introduced over the year portfolio – Closure of Merthyr Tydfil production facility Strengthening of – 4 dealers acquired in Germany, France and Turkey in 2013 global sales and – New Linde branches opened in Thailand and Malaysia service network Further solid – Installed truck base reaches 1.2 million worldwide service business – Services with 44% share of revenues in 2013 growth – A quarter of revenues in China are from services 20 March 2014 | FY 2013 Update Call 6
CURRENT MARKET DEVELOPMENT Over one million trucks ordered globally in 2013 Global market is up by 7% in 2013 Global market Q1 2012 – Q4 2013 – Global orders at record level Growth y-o-y (r.s.) Order intake in thousand units (l.s.) – Q4 acceleration: upward trend strengthened 300 16% – Major growth contribution from China & USA 14% 250 12% 10% Positive momentum in regions 8% 200 – Western Europe: finally grows in Q4 6% 4% 150 – Eastern Europe: solid growth path in 2013; 2% strong growth in Turkey, Poland and Czech 0% 100 Republic -2% – Latin America: slower year-end after strong -4% 50 H1; order level in Brazil at new high -6% – Asia: China drives global growth with -8% 0 sustained high growth rates Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 Source: WITS/FEM All data is based on industrial trucks order intake in units. 20 March 2014 | FY 2013 Update Call 7
REGIONAL MARKET DEVELOPMENT Acceleration in final quarter Year-over-year change in % North America Eastern Europe Q3/13 Q4/13 FY13 Q3/13 Q4/13 FY13 13.5% 10.3% 10.9% Western Europe 7.4% 13.9% 7.8% Q3/13 Q4/13 FY13 -2.0% 10.1% 0.3% China Q3/13 Q4/13 FY13 21.2% 23.4% 14.4% Central/South America Q3/13 Q4/13 FY13 -8.8% 0.0% 7.5% WORLD Q3/13 Q4/13 FY13 7.5% 13.0% 6.9% Note: Based on order intake in units through December 2013 Source: WITS/FEM 20 March 2014 | FY 2013 Update Call 8
KION PERFORMANCE Positive momentum with strong final quarter Order intake 1% above previous year KION global orders – High level of 142,800 units in 2013 in thousands of units – Recovery in H2 with a strong Q4 +1% – Growth driven by WH-trucks and emerging 143 142 market performance 35 37 Continued recovery in Western Europe – Core markets strengthen again in Q4 Q4 32 32 – German demand gains momentum Q3 Q2 Important momentum from emerging markets 36 Q1 36 – 35% of all orders from emerging markets – All-time high order levels in China and Brazil 39 38 – Healthy gains in Eastern Europe 2012 2013 Note: All data is based on industrial trucks order intake in units. 20 March 2014 | FY 2013 Update Call 9
REGIONAL PERSPECTIVE Solid finish supported by Western European recovery Western Europe Regional development – Market: accelerates in Q4, however slow Order intake in units: %-change 2013 vs. 2012 demand for CB trucks and a soft German market impact full year outcome Market KION – KION: follows market uptrend with a slight delay Q4 FY Q4 FY Eastern Europe Western 10.1 0.3 7.8 -2.4 – Market: solid growth driven by demand for WH Europe trucks, special factors in Q4 – KION: full year performance in line with market 13.9 7.8 -1.8 7.5 Eastern Central/South America Europe – Market: regional growth driven by Brazil – KION: outperforms region across products Central/ 0.0 7.5 0.5 19.5 South China America – Market: propelled by demand for economy IC trucks 23.4 14.4 12.5 9.1 China – KION: achieves all time high order level 20 March 2014 | FY 2013 Update Call 10
WESTERN EUROPE Core markets on recovery path Market pre- and post crisis – General uplift: positive macro- Indexed LTM order units (year end 2006=100) economic prospects support investment activity 120 – Uneven levels and stages of Germany recovery in core markets 100 U.K. – Germany: recovery after a recent France soft patch 80 – UK: demand picking up towards pre-crisis level Italy 60 – France: steady, but still below pre-crisis level Spain 40 – Italy and Spain: stabilized well below pre-crisis levels with pent-up 20 demand from ageing fleets 2007 2008 2009 2010 2011 2012 2013 Source: WITS/FEM 20 March 2014 | FY 2013 Update Call 11
SELECTED PRODUCT LAUNCHES IN 2013 Efficient, cutting edge solutions drive customer value Cleanest diesel truck New torque converter trucks Linde 393 EVO STILL RC 40/41 – Major facelift for leading IC – Expansion of IC truck truck series (2.5 to 5.0 ton) portfolio (3.0 ton) – New engines for latest – Common platform based on emissions standards Chinese development work – Lowest emission & – Europe: expansion of IC consumption truck portfolio – Enhanced ergonomics and – Asia: strengthening market safety position New generation reach trucks 121x series trucks to enter Linde 1120 Linde 1219 – Design based on module value segment strategy of common parts – New product family – Improved performance and developed in China for cost of operations emerging markets globally – Best mast stability & highest – Expanding addressable lifting height market in premium segment – Group wide platform for – Full range of IC and E-trucks further product launches 20 March 2014 | FY 2013 Update Call 12
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 13
KEY FINANCIALS 2013 Solid performance with further improved profitability Order intake 1 (€m) Revenues 1 (€m) Adj. EBIT 1,2 (€m) Net income and growth (%) and growth (%) and margin (%) and growth (%) -1.4% -2.2% 9.0% 9.3% +2.0% FX effect: FX effect: 161 €74m €75m 417 138 408 4,590 4,560 4,495 4,489 LHY sale effect of €155m 2012 2013 2012 2013 2012 2013 2012 2013 1 For comparability purposes prior year figures are adjusted for the disposal of our Hydraulics Business 2 Adjusted for one-off items and purchase price allocation 20 March 2014 | FY 2013 Update Call 14
ORDER INTAKE BY QUARTER Q4: unit growth vs. negative FX and mix effects on value basis Order intake (thousand units and €m) 1 – Variance between order intake growth in units and values is driven by 39.1 38.0 following main factors: 37.0 36.4 35.8 34.7 – Product mix with strong 32.1 31.5 growth in WH trucks – FX-rate development 1,205 1,193 – Regional mix 1,168 1,166 1,145 – Increase of services revenues cannot 1,105 compensate these effects – Stable order backlog of 1,052 1,046 €693m at year-end compared to Q3 2013 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Order intake (thousand units) Order intake (€m) 1 For comparability purposes prior year figures are adjusted for the disposal of our Hydraulics Business 20 March 2014 | FY 2013 Update Call 15
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