KION GROUP AG Corporate Presentation Wiesbaden, November

KION GROUP AG

Corporate PresentationFrankfurt, March 2018

© 2018 KION GROUP AG. All rights reserved.3 KION GROUP AG | Corporate Presentation | March 2018

KION Group at a glance

A world leader in supply chain solutions, industrial trucks, services

European

No. 1 + Global No. 2in industrial trucks and services

1.3 millionGrowing truck base

worldwide support

after sales business

Over 6,000installed warehouse

systems

at customers

Around 1,500sales and/or service locations

Global presence

in more than

100countries with about

32,000 employees

World-renowned brands are clear industry leaders.

Global

No. 1in supply chain solutions

© 2018 KION GROUP AG. All rights reserved.

Our shared KION Group values

4 KION GROUP AG | Corporate Presentation | March 2018

We do what is right.

INTEGRITY

We trust each other.

COLLABORATION

We change and innovate.

COURAGE

We create outstanding

customer value.

EXCELLENCE


KION 2027 – Strategy maintains aspiration for profitable growth

Capital

efficiency

Resilience

Profita-

bility

Growth

Grow above the material

handling market

Remain most profitable

player in the industry

Provide attractive return on

capital for shareholders

Maintain profitability

across business cycle

Profitable

growth


KION 2027 – Strategic fields of action set priorities to achieve aspiration

We are leading the material handling

industry in the efficient use of energy

through our products and solutions.

We focus on new energy sources for

industrial trucks and related services.

PerformanceInnovation

Solutions

for Material

Handling

We transform our business into the digital world. For customers we develop digital solutions to improve

their intralogistics efficiency. Internally we digitalise our processes to improve our performance.

Our solutions allow customers to

benefit from automation effectively,

supporting them on their journey to

“lights-out” warehouses.

We continuously improve the

efficiency in our group as well as

the performance of our products.

We drive innovation in the material

handling industry through an effective

innovation ecosystem and a state-

of-the-art development process &

speed.


€ 7.7 billion revenue

7 KION GROUP AG | Corporate Presentation | March 2018

KION Group at a glance

A truly global player with a well-balanced portfolio

19% 69% 12%

Revenue 2017

10.0% adjusted EBIT margin

~ 32,000 highly skilled employees

2017

74% 26%

Industrial Trucks

and Services Supply Chain

Solutions

APACAmericas EMEA

€€€

61% 39%

New business Services


Fragmentation of

supply chains

Globalisation Industrialisation

E-Commerce Industry 4.0

Automation Digitisation

1Calculated based on CAGRs for new truck sales and GDP for 1980-2017 Source: WITS/FEM, IMF; Modern Materials Handling 2011-2016

Growth drivers

KION GROUP AG | Corporate Presentation | March 20188

Growth drivers and trends

Attractive market with growth profile above GDP

Industrial trucks demand grows approx. 1.5x World

GDP1

2010 - 20172000 - 20101990 - 20001980 - 1990

2.7%

8.4%

2.5%3.0%2.8%4.2%

3.3%4.1%

Global new trucks Global GDP

Automation systems (Top 20 suppliers’ revenue in $bn)

Growth in % per year

2010 2011 2012 2013 2014 2015 2016

CAGR~7%


Industrial Trucks and Services

Operating Units

Supply Chain Solutions

Operating Unit

Corporate Services

incl. Financial Services

KION Group Segments

A unique and complete material handling offering


Linde MH EMEA

STILL EMEA

KION Americas

KION Asia Pacific

Internal service entities

Holding functions

Dematic

KION Group segments


KION Group Segments

A unique and complete material handling offering

Co

rpo

rate

Se

rvic

es

Supply Chain SolutionsIndustrial Trucks and Services



Integrated Total Offering across KION

From industrial trucks to fully automated warehouses


Fleet data

managementE-trucks IC-trucks

Warehouse

trucks


Industry 4.0 and Internet of Things (IoT)

How the KION Group adds value to customer operations and warehouses

Intelligent trucks

• Trucks equipped with

electronic control unit

• Driver assistance

systems


• Fleet data services

• Optimise truck fleet usage

Fleet data

management • Full range of automated

series trucks

• Automation of the entire

material flow

Automated trucks

• Customised integrated

supply chain solutions

• Automated trucks

combined with further

hard- and software

Automation systems


Benefits for the customer

Cost-efficient material handling

68%

EMEA

Optimisation of

operation times &

energy consumption

Prevention of

accidents &

damages

Acceleration of

product handling

& shipment


© 2018 KION GROUP AG. All rights reserved.14

Market-Leading Positions GloballyA unique player in Intralogistics 4.0

Industrial trucks1 Automation systems2

1 Toyota

2 KION

3 Mitsubishi Nichiyu

4 Jungheinrich

5 Crown

6 Hyster-Yale

7 Anhui Heli

8 Doosan

9 Hangcha

10 Clark

1 Dematic

2 SSI Schäfer

3 Daifuku

4 Vanderlande

5 Knapp

6 Intelligrated

7 Witron

8 TGW Logistics

9 Swisslog

10 Fortna

+

− Unique combination of

industrial trucks and

automation systems

− Market-leading positions

globally

1 Ranking by total company revenue 2016 2 Excluding revenue from non-automation businessesSource: Modern Materials Handling, May and August 2017; ARC Advisory Group Warehouse Automation & Control Global Market Research Study 2016

Top 10 suppliers 2016 Top 10 suppliers 2016



Industrial Trucks and Services



Industrial Trucks and Services: Segment Overview

A world leader in industrial trucks with a strong service business

Current key financials Revenues by product

Revenue by geography2 Truck order intake by industry2

Services

44 %New Business

56 %


1Adjusted for PPA items and non-recurring items 2Calculation based on German customer base only 2016

UK 7 %Italy 7 %

Spain 4 %

RoW 4 %

Germany 24 %

France 16 %Rest of WEU 15 %

EEU 9 %

Asia 10 %

North America 2 %

South America 2 %Logistics 17%

Chemicals 10 %

Metals 11

%

Food 10 %

Wholesale 8 %

Automotive 7 %

Beverage 6 %

Construction 6 %

Paper & Print 3 %

Other Industries 22 %

(in €m) 2017 2016 2015

Order intake 5,859 5,383 5,146

Revenue 5,631 5,203 5,045

Adjusted EBIT1 640 587 529

Adjusted EBIT Margin 11.4% 11.3% 10.5%


Integrated Industrial Trucks and Services business model

Global capital goods ecosystem of products and services

~ 48% of new truck sales

carry financing contracts.

After duration of financing, trucks are used

in rental fleet or sold as used trucks.

Most financing contracts

also contain service

contracts.

New

truck

sales

Financial

Services

Aftersales

and service

solutions

Rental

and used

trucks

Ongoing customer relationship

(e.g. short-term rental)

triggers new truck sales.

Products

Services


Industrial Trucks und Services

A unique range of products1 serving customer needs worldwide

1Note: The products shown are just a selection from our comprehensive product range.

Internal combustion (IC) counterbalanced

trucks

• Mainly used outside

Electric (E) counter-balanced trucks

• Mainly used inside

Warehouse technology: pedestrian trucks

• Transportation of loads at a walking pace

Tractors

• Industrial processes / train stations / airports

Automated and autonomous vehicles

• Warehouse & Distribution Solutions

Warehouse technology: rider trucks

• Faster transportation of loads

• Specially designed for warehouse requirements

http://www.voltas-mh.com/images/reach-truck-b.jpg




Supply Chain Solutions: Segment Overview

Leading in material handling automation solutions

Key financials Revenues by product

Revenue by region Revenue by industry


1Adjusted in line with KION Group’s adjusted financial performance indicators

APAC 13 %

EMEA

30 % Americas

57 %

Other 14 %

Grocery 5 %

Wholesale 7 %

Apparel 9 %

Food and beverage 11 %

General merchandise 18 %

E-Commerce 32 %

(in €m) 2017 2016 2015

Order intake 2,099 431 49

Revenue 2,006 366 33

Adjusted EBIT1 181 6 2

Adjusted EBIT Margin1 9.0% 1.6% 6.1%

Services

25 % Business solutions

75 %

Parcel 4 %

© 2018 KION GROUP AG. All rights reserved.21

Supply Chain SolutionsComprehensive integrated range of high-end automation solutions

Warehouse execution system

Conveyor

− All conveyor types

for assembly,

manufacturing and

distribution

Sortation Storage Picking Palletising

− Focus on fast,

reliable sortation

− Full sortation

technology range

− Complete storage

range including

AS/RS1, shuttles

and racking

− Voice-directed

picking

− Pick and Put-to-

Light systems

− Mixed case

palletising

solutions

− Advanced real-time, knowledge-based logistics software beyond warehouse management & control software

Customer service, upgrades and refurbishments

1 AS/RS = Automated storage and retrieval systems




Total life cycle support optimises system productivity

68%

EMEA

Worldwide service network

• More than 600 service employees in 18 countries reach

90% of customers within 2 hours

• Remote monitoring, diagnostics and support

• Focus on faultless system

Modernisation and upgrades

• New life for old systems regardless of make or model

• Increased throughput, productivity and accuracy

• Customised programmes can be implemented with

minimal disruption to operational schedule


Customer

Service

onsite

Remote

monitoring

Operations

support

onsite

Dematic

service

solutions

Consulting,

training

Spare

parts

serviceModerni-

sation,

upgrades


Production of first

DEMAG storage and

retrieval machines

KION Group History

Almost two centuries of leadership

Corp

ora

teO

pera

tional

Start of

forklift truck

production

at OM

Start of forklift truck

production at LMH

Hubtrac – First

forklift truck with

hydro-static drive

351 series sets

new design and

performance

standards for

forklift trucks

First manufacturer

to introduce ergonomic

model in India

Launch of energy

saving program

Blue Q

Launch of

hybrid trucks

Start of

Strategy 2020

Start of iGoEasy

Foundation

of OM

Foundation of

STILL

Foundation

of Voltas

Linde AG

takes over

STILL

Acquisi-

tion of

Fenwick

Linde AG takes over OM

Foundation of Baoli

Formation of

KION Group,

acquisition

by

KKR/GSCP

JV with

Baoli

Combination of

OM and STILL

JV with Voltas

Strategic

Partnership

with Weichai

Power

IPO of KION

GROUP AG

Voltas becomes

KION India

Linde NA becomes

KION North America

Foundation of

Güldner Motoren-

Gesellschaft by

Carl von Linde,

Hugo Güldner and

partners

Acquisition of

Egemin Handling

Automation

Acquisition of

Retrotech

Acquisi-

tion of

Dematic

1900 1910 1920 1940 1950 1960 1980 1990 2000 2010 2012 2013 1970 1930

Launch of 39X

truck

2014 2016 2015

Cooperation with Balyo

for robotic solutions

Start of

forklift truck

production at

Fenwick

Formation of

Rapistan (USA)

Foundation

of Colby (Australia)

1819

Formation of Demag, Mech.

Werkstätten (Germany) Dematic acquires HK

Systems

Dematic acquires

SDI Group and

Reddwerks


Start of forklift truck

production at STILL.

First electric trolleys

and forklift trucks

First steps towards using

lithium-ion battery modules in

various electric truck modelsWorld’s first

Automated

Guided Vehicle

(AGV)


Shareholder structure

Included in MDAX and STOXX Europe 600 indices

Aktionärsstruktur zum 22. Juli 2016Shareholder structure March 2018


Weichai Power

43.3 %

Free float

56.6 %

KION GROUP AG

0.1 %


Global Manufacturing Network

Production facilities for Industrial Trucks and Supply Chain Solutions

Summerville

Indaiatuba

Pune

Frankfurt,

KION Group

Head Office

Milan

Luzzara

Châtellerault

Hamburg

Zwijndrecht

Salt Lake City

Monterrey

Sydney

Bielefeld

ReutlingenAschaffenburg

Stříbro

Moravany

Českŷ Krumlov


Heusenstamm/

Offenbach

Putian

Jingjiang

Xiamen

Suzhou

Holland Grand Rapids


Strong global sales and service network provides unique access

to a global customer base

~720 sales and/or

service locations

~450 sales and/or

service locations

~350 sales and/or

service locations

More than 1,500 sales and/or service locations in over 100 countries with ~16,000 multi-skilled

industrial trucks service staff1 and more than 3,000 systems engineers

1Includes direct and additional external service staff

Americas EMEA Asia Pacific (APAC)


Financials

Key figures

(in € m) 2017 2016 2016 2015 2014

Order intake 7,979 5,833 5,553 5,216 4,7714

Revenue 7,654 5,587 5,328 5,098 4,678

Adjusted EBITDA1 1,224 932 850 780

Adjusted EBITDA margin1 16.0% 16.7% 16.7% 16.7%

Adjusted EBIT1 766 537 527 483 443

Adjusted EBIT margin1 10.0% 9.6% 9.9% 9.5% 9.5%

Net income 426 246 221 178

ROCE2 9.9% 6.8% 12.4% 11.9% 11.4%

Capital expenditures3 218 167 143 133

Total R&D spending 212 147 131 120

Free cash flow5 378 -1,850 318 333 306

Net financial debt 2,096 2,903 573 811

Employees6 31,608 30,544 23,506 22,669

KION GROUP AG (stand alone)I Incl. Dematic

1 Adjusted for PPA items and non-recurring

items

2 ROCE is defined as the proportion of EBIT

adjusted to capital employed

3 Capital expenditures including capitalised

development costs, excluding leased and

rental assets

4 Order intake for FY 2014 adjusted to new

presentation

5 Free cash flow is defined as cash flow from

operating activities plus cash flow from

investing activities

6 Number of employees (full-time equivalent) as

at balance sheet date 31/12/


KION GROUP AG


KION Group

A world leader in supply chain solutions, industrial trucks and services

Attractive market with growth profile above GDP

A global leader: strong home base & well positioned in growth markets

Robust integrated business model with high contribution from services

Technology leadership with strong position in warehouse automation

Profitability benchmark – well prepared for future value creation

Highly motivated and qualified employees

KION Group


Strategy „KION 2027“: maintains aspiration for profitable growth


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.

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KION GROUP AG Corporate Presentation Wiesbaden, November