Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group

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Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Capital Markets Day 2020
KION – Leading the Industry
Frankfurt – March 5, 2020
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
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
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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.
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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 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,” “guidance,” 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 EBIT margin, adjusted net profit, free cash flow, operating cash flow, gross debt, and net debt, industrial net operating 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.

 2         Capital Markets Day 2020                                                                                                                                            © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Capital Markets Day 2020
KION – Leading the Industry
Frankfurt – March 5, 2020
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Capital Markets Day 2020
Experienced and committed Management Team

                        Gordon Riske               Anke Groth                        Andreas Krinninger
                        Chief Executive Officer    Chief Financial Officer           President Linde Material
                        KION Group                 KION Group                        Handling EMEA

                        Dr. Eike Böhm              Ching Pong Quek                   Hasan Dandashly
                        Chief Technology Officer   Chief APAC &                      President & Chief
                        KION Group                 Americas Officer                  Executive Officer
                                                   KION Group                        Dematic

4   Capital Markets Day 2020                                                 © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Capital Markets Day
Agenda
                                  Speaker                           Time
CEO: Strategy Update              GordonD
                                        Riske                       10:30-11:10
CFO: Financial Agenda             Anke Groth                        11:10-11:30
Q&A                                                                 11:30-11:50
Break                                                               11:50-12:35
IT&S Value Drivers                Andreas Krinninger                12:35-13:10
    Deep Dive: Growing in China   Ching Pong Quek                   13:10-13:30
SCS Value Drivers                 Hasan Dandashly                   13:30-14:05
Mobile Automation                 Dr. Eike Böhm                     14:05-14:20
Q&A                                                                 14:20-14:40

5     Capital Markets Day 2020                         © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Value Creation
Proven value creation since IPO

    Revenue growth                                          Adj. EBIT growth   Total shareholder
                                                                               return

    6.6% p.a. 7.9% p.a. 182%
    CAGR since 2014,                                        CAGR since 2014,   Return since IPO2,
    incl. Dematic1                                          incl. Dematic1     incl. dividends

1CAGR     excluding one-time Dematic acquisition effect
2Return   calculated from IPO in June 2013 to 31 Dec 2019

6         Capital Markets Day 2020                                                    © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Value Creation
The journey continues: strategic investments to position KION for the future
                                                                          Mid-term
                                                  2020-2021
                                                                          Shaping the future of
                                      2018-2019                           material handling
                                                  Strategic investments
                          2016-2017   Focus on    and performance
    2013-2015                         strategic
                Dematic
    IPO and de- integration
                                      fields of     ✓ More global coverage
                                      action
    leveraging                                        and setup
                                                    ✓ Focus on innovation,
                                                      software, and digital
                                                    ✓ Next-level efficiency
7      Capital Markets Day 2020                                                 © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Attractive Market
Material handling industry benefits from attractive macro-drivers

    Megatrends                     E-commerce                      Urbanization              Digitization                  Sustainability
                               − Smaller order sizes            − Denser population in   − Increasing                − Increasing demand
                                                                  cities                   connectivity and big        for green supply
                               − More frequent orders
                                                                                           data capabilities           chains
    Implications                                                − Smaller warehouses
                               − Need for efficient,
    for material                                                                         − Demand for con-           − Demand for electric
                                 automated                      − Need for micro-
                                                                                           nected vehicles and         vehicles with Li-Ion
    handling                     solutions                        fulfillment and
                                                                                           systems, predictive         batteries or Fuel-
                                                                  smaller trucks
                                                                                           maintenance                 Cells

                               E-commerce         Micro-fulfillment                      Mobile robot                Li-Ion battery pow-
    Material                   automation market growth2
                                                1                                        market2                     ered truck market3
    handling
    trends1
                               +14% +58% +54% +42%
1CAGR 2019-2027, KION market model
2CAGR 2019-2023, Interact Analysis 2019
3CAGR 2019-2027, Interact Analysis 2019 and KION market model

8       Capital Markets Day 2020                                                                                  © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Attractive Market
Material handling is changing at high pace – on its path to lights-out

                                                                                      Software &             Lights-out
                                                                                      connected
                                                                   Micro-              solutions
                          Fleet                                  fulfillment                       Big data and
                       management                             New energy       Autonomous            analytics
                                                               sources
                   Assistance                                                    vehicles           Advanced
                    systems
                                                                        Sustainable                  robotics
                                                                         products

                                       Industrial trucks & Automation systems
       Material handling – technology trends (illustrative)

9
       Yesterday
    Capital Markets Day 2020
                                                                 Today                             Tomorrow
                                                                                                   © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day 2020 KION - Leading the Industry - Frankfurt - March 5, 2020 - KION Group
Attractive Market
Continued strong long-term growth in global material handling market

Material handling – total addressable market,                                                                                                 Long-term growth,
in EUR bn                                                                                                                                     CAGR 2019-27e

                                                                                               115

                                                                                                59
                                                                                                                                                    +8%
                                  72
     Automation                   32
     systems

  Industrial                                                                                    56                                                  +4%
  trucks
                                  40
                                                                 0
                             2019                                                            2027e
Source: KION market model, including service revenues. Serial/hybrid mobile automation solutions included in industrial trucks, remaining bespoke mobile automation solutions in
automation systems

10     Capital Markets Day 2020                                                                                                                 © 2020 KION GROUP AG. All rights reserved.
Attractive Market
Strong growth across all regions expected in material handling market

Material handling – total addressable market,                                                                                                 Long-term growth,
in EUR bn                                                                                                                                     CAGR 2019-27e

                                                                                               115
                                                                                                                                               +6%
                                                                                                43
                                  72
  EMEA                            27                                                            36                                             +6%
  Americas                        23
  APAC                                                                                          36
                                  21                                                                                                           +7%
                             2019                                                            2027e
Source: KION market model, including service revenues. Serial/hybrid mobile automation solutions included in industrial trucks, remaining bespoke mobile automation solutions in
automation systems. Numbers may not add up to total due to rounding

11     Capital Markets Day 2020                                                                                                                 © 2020 KION GROUP AG. All rights reserved.
Attractive Market
E-trucks and e-commerce automation strongly contribute to global growth

Industrial trucks,                                                                           Automation systems,
Market revenue mix by             product1                         CAGR,                     Market revenue mix by vertical1                                          CAGR,
                                                                   2019-27e                                                                                           2019-27e

                                                                            +9%                                                                                             +14%
E-trucks                                                                                                                                                                       +9%
                                                                                         E-comm.                                                                               +7%
                                                                             -1%          Grocery
IC-trucks                                                                              Gen. merch.
                                                                            +8%                                                                                                +6%
WH-rider                                                                                         Other
WH-ped                                                                    +11%

                 2019                             2027e                                                       2019                          2027e
1Excludingservice revenues, Source: KION market model, excluding service revenues. Serial/hybrid mobile automation solutions included in industrial trucks, remaining bespoke mobile
automation solutions in automation systems

12     Capital Markets Day 2020                                                                                                               © 2020 KION GROUP AG. All rights reserved.
More Global Coverage and Setup
KION with an increasingly non-cyclical and more global profile

KION Group                                      2014                                         2019                                2027e2
revenue split

                                 New-                                             New-                                 New-
Non-cyclical                                                                                                                32%
                               trucks 53%                  47% Non-             trucks 39%           61% Non-        trucks                     68% Non-
Business1                                                           cyclical                             cyclical                                         cyclical

                            Americas           6% 11%             APAC Americas              22% 11%    APAC        Americas             14%           APAC
                                                                                                                               23%
Regional
Split
                                   EMEA        83%                                 EMEA        68%                    EMEA             63%

1Non-cyclical    business calculated as IT&S services plus SCS new businesses and services
2Indicative,   without further M&A activity, based on organic growth

13      Capital Markets Day 2020                                                                                         © 2020 KION GROUP AG. All rights reserved.
More Global Coverage and Setup
Strategic investments to grow in China

                                                  − China is the single largest forklift market with
                                                    significant growth potential
                                                  − KION is the leading foreign player in China with
 Growth                                             longstanding experience

 in China                                         − Comprehensive growth strategy including
                                                    development of new products, expansion of the local
                                                    sales network, and a new industrial truck plant

                                     Focus on growing
                                1.   value-segment and electrification
 Strategic
 Rationale                      2.   Ensure production capacity

                                3.   Increase market coverage
14   Capital Markets Day 2020                                                      © 2020 KION GROUP AG. All rights reserved.
More Global Coverage and Setup
KION continuously broadening geographical footprint

KION IT&S production capacity by region               IT&S footprint development
                                             4%
                                                         Footprint restructuring
                                            32%          in WEU after financial
                                 5%                      crisis
Americas            4%          18%
APAC                16%          7%         11%          Capacity expansion in
EEU                 0%                                   APAC and EEU
                                                         countries:
                                                            New plants in India
                    80%         70%         53%              and China (Xiamen
WEU
                                                             and Jinan)
                                                            New plants in Czech
                                                             Republic and Poland
                  2014          2019       2022e

15   Capital Markets Day 2020                                      © 2020 KION GROUP AG. All rights reserved.
Focus on Innovation, Software, and Digital
A unique, leading player in Intralogistics 4.0

     Industrial trucks1                                   +      Automation systems2
 Top 6 suppliers                                                 Top 6 suppliers
                                                                                                               Unique
 1       Toyota                                                 1     KION
                                                                                                               intralogistics
 2       KION                                                   2     SSI Schäfer
                                                                                                               offering
 3       Mitsubishi Logisnext                                   3     Toyota (Vanderlande)
 4       Jungheinrich                                           4     Daifuku                                  Market-leading
 5       Crown                                                  5     Honeywell (Intelligrated)
                                                                                                               positions
 6       Hyster-Yale                                            6     Knapp
                                                                                                               globally
1Based   on revenue for 2018 for industrial trucks, Börsen-Zeitung, 26 April 2019
2Based   on revenue for 2018 excluding revenue from non-automation businesses, Börsen-Zeitung, 26 April 2019

16       Capital Markets Day 2020                                                                                  © 2020 KION GROUP AG. All rights reserved.
Focus on Innovation, Software, and Digital
KION leads with innovation to drive customer centricity

                                  Innovation

           Industrial              New truck generations introduced
IT&S

           Trucks                  Focus on new technologies: Li-Ion batteries and
                                    connectivity

           Mobile                  Global offering based on serial trucks
           Automation              Shared technology between trucks and systems
SCS

                                   New vertical solutions, e.g. Micro-Fulfillment,
           Automation               returns handling
           Systems
                                   Robotic picking integration

17     Capital Markets Day 2020                                                       © 2020 KION GROUP AG. All rights reserved.
Focus on Innovation, Software, and Digital
Advancing digital transformation across entire group

Group-wide digital transformation                Recent examples

     Enterprise and
     operations
                                  Nov 2019:              Mar 2019:
     Solutions and                Linde H20-             Dematic
     services
                                  35 series              iQ Virtual
     Customer
     interaction                  with                   as
     New business                 digital twin           digital twin
     models

18     Capital Markets Day 2020                                    © 2020 KION GROUP AG. All rights reserved.
Focus on Innovation, Software, and Digital
DAI acquisition strengthens software offering as differentiating factor

                                                − Dematic acquires
                                                  Digital Applications International (DAI)
                                                − Proven partner for 20 years
 Acquisition
                                                − DAI offers logistics automation software and employs
 Case                                             ~240 people, most of whom software engineers

                                1.   Expanded offering
 Strategic
 Goals                          2.   Cross-selling

                                3.   Strengthened software expertise
19   Capital Markets Day 2020                                                   © 2020 KION GROUP AG. All rights reserved.
Focus on Innovation, Software, and Digital
KION fully committed to sustainable material handling

Electrification of products,                                      Clear sustainability strategy,
KION IT&S order intake units, FY 2019                             KION achievements, selection

                                                                  Received B score in 2019, placing
      IC-trucks
                                        E-trucks                  KION in top 23% of all companies
                   14%            25%
                                                                  ISS ESG Prime Rating in 2018,

                     61%
                                               86%
                                           Electrified products
                                                                  equivalent to top 20% of
                                                                  companies in machinery

                                                                  ESG score of 71, considered
     E-warehouse                                                  outperformer in its industry
           trucks
                                                                  Inclusion in FTSE4Good index
                                                   Total: 214k
Source: WITS/FEM

20     Capital Markets Day 2020                                                                  © 2020 KION GROUP AG. All rights reserved.
Focus on Innovation, Software, and Digital
Strong R&D commitment with increased spend in clear focus areas

Commitment to R&D,
KION R&D spend1, in % of revenue

                                                                 ~3.0%           Increased R&D spend
                2.8% 2.8% 2.7%                                           ~2.8%
 2.6% 2.6% 2.6%                                                                  in 2020 in particular in the areas of
                                                                                  New energy (Li-Ion batteries)
                                                                                  Mobile automation
                                                                                  Digital, especially connectivity

 2014         2015      2016       2017      2018     2019 2020e mid-
1R&D expenditures (P&L) + capitalized development costs = R&D spend term2
2Absolute   R&D spend will further grow, however below revenue growth

21     Capital Markets Day 2020                                                                            © 2020 KION GROUP AG. All rights reserved.
Next-level Efficiency
Continued focus on efficiencies in R&D and production

     Efficient product development                       Efficient manufacturing setup

     Drive axles                Masts   Batteries

− Continued implementation of module strategy       − Efficiency program ongoing across European
  resulting in increased number of shared parts       IT&S plants
− Application of agile product development          − Opening of new production facility in India and
  processes resulting in faster time-to-market        extension of facility in China (Xiamen)
                                                    − Announcement of new IT&S plants in Poland
                                                      and China (Jinan)
22   Capital Markets Day 2020                                                  © 2020 KION GROUP AG. All rights reserved.
Next-level Efficiency
Group-wide performance program (PEx) in place to drive efficiencies

Program objectives                Example initiatives

 Compensate                        Price assertion
 cost inflation                    Material cost savings
                                                                ✓Group-wide
                                                                 program launched
 Capture additional                Productivity improvements
 savings potential                 Indirect procurement
                                    savings                     ✓Sponsored and steered by
                                                                 top management
     Improve cost                  Shared service center
     flexibility                   Process automation

23     Capital Markets Day 2020                                           © 2020 KION GROUP AG. All rights reserved.
Leading the Industry
KION investment highlights

     1│         Attractive markets
                                           KION best positioned to benefit from global mega-trends and will
                                           grow at least in line with its above-GDP growth markets

                A global leader in
     2│
                                           KION leads with innovation and customer centricity and
                material handling          shapes the industry with investments into new technologies

                Resilient business
     3│
                                           KION has an integrated business model with high contribution
                model                      from services, automation systems, and software

                Capitalize on attractive
     4│
                                           KION with strategic investments to capture
                areas of growth            value creation potential, including China and software

                Integrated group with
     5│
                                           KION driving value creation across the group through
                scale and synergies        R&D, production, and further scale and efficiencies

24   Capital Markets Day 2020                                                          © 2020 KION GROUP AG. All rights reserved.
Mid-term Targets
Strategy KION 2027 for continued profitable growth

Mid-term                                                                                       Aspiration
Targets 2022                                                                                   KION 2027
                                                                                                                                              Growth
 EUR 10bn revenue by 2022,                                                    EUR
 growing above material handling market                                       10bn
                                                                                                                           Capital Profitable                    Profita-
                                                                                                                          efficiency growth                      bility

 Profitable growth with Adj. EBIT                                           10-12%
 Margin in the double-digit range
                                                                                                                                           Resilience

     2018            2019               2020              2021               2022               2023              2024               2025               2026               2027

Disclaimer: Performance depends on industry-specific conditions and may be negatively affected by increasing uncertainty or worsening of the economic and political situation

25     Capital Markets Day 2020                                                                                                                  © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day
Agenda
                                   Speaker                           Time
CEO: Strategy Update               Gordon Riske                      10:30-11:10
CFO: Financial Agenda                    D
                                   Anke Groth                        11:10-11:30
Q&A                                                                  11:30-11:50
Break                                                                11:50-12:35
IT&S Value Drivers                 Andreas Krinninger                12:35-13:10
     Deep Dive: Growing in China   Ching Pong Quek                   13:10-13:30
SCS Value Drivers                  Hasan Dandashly                   13:30-14:05
Mobile Automation                  Dr. Eike Böhm                     14:05-14:20
Q&A                                                                  14:20-14:40

26     Capital Markets Day 2020                         © 2020 KION GROUP AG. All rights reserved.
Guidance Delivery
Year-end guidance was achieved every year since IPO

Guidance delivery on group level – all metrics (in EUR mn)

       2019
       2018
                                                      9,112
                                                                    8,807
       2017
                                                1
       2016                                                                          851
                                                                                                              568
       2015
       2014                                         Order intake   Net sales      Adj. EBIT                   FCF

                                                                         Guidance lower range         Guidance upper range
1FCF   adjusted by Dematic acquisition effect

27       Capital Markets Day 2020                                                               © 2020 KION GROUP AG. All rights reserved.
2019 Results Overview
Strong topline development 2019 – but slight decrease of Adj. EBIT Margin

                                  Selected financials, in EUR   Change 2018-2019

                                  2018            2019
                   Revenue        5.9bn          6.4bn            +8.2%            − Strong revenue growth in
                                                                                     New Business
 ITS               Adj. EBIT      655mn         695mn             +6.1%
                                                                                   − Margin impacted by mix effects
                   Adj. EBIT
                    Margin        11.1%         10.8%             -0.3pp.            and R&D spend

                   Revenue        2.1bn          2.4bn            +15.8%           − Strong revenue growth in
                                                                                     Project Business
 SCS               Adj. EBIT      180mn         220mn             +22.2%           − Improved project execution
                   Adj. EBIT
                                  8.8%           9.6%             +0.8pp.            drives margin improvement
                    Margin

                   Revenue        8.0bn          8.8bn            +10.1%
 KION              Adj. EBIT      790mn         851mn             +7.7%
                   Adj. EBIT
                    Margin        9.9%           9.7%             -0.2pp.

28     Capital Markets Day 2020                                                          © 2020 KION GROUP AG. All rights reserved.
CFO Priorities
Value creation through investments and profitability program

                                    Focused Investments
                                1
 APAC stays growth
 engine in IT&S
                                    to Strengthen Leadership
 Shift from IC- to
 E-trucks

 Strong growth in
 automation

 Growing service
                                2   Strategic Investments
                                    into Areas of Growth
 demand

 Growing mobile
 automation sector              3   Relentless
                                    Focus on Profitability
29   Capital Markets Day 2020                                  © 2020 KION GROUP AG. All rights reserved.
1 | Focused Investments to Strengthen Leadership
New products and electrification

                                                                                                  Financial benefits
                  Rationale                                   Short-term impact                   Mid-term
                                                                                                  mid-termimpact
                                                              R&D   Slight increase in 2020       Revenue       Growth above market
                                                              spend (~3.0% of revenue) – mid-                   in core business
 R&D              − New truck generation introduced                 term target of ~2.8%
 spend and
                  − R&D spend in strategic action fields of
 new
                    automation, energy, and connectivity      COGS/ Higher depreciation and       Adj.          Profitability in target
 product
                                                              R&D   lower capitalization due to   EBIT          range within next 2
 launches
                                                                    recent product launches                     years

                                                              Capex ~EUR 15mn investment          Revenue       Significant growth in Li-
 IT&S:            − Cost optimization through bundling of                                                       Ion battery segment
 Li-Ion             volumes
 battery JV
                  − Secure Li-Ion cell access                                                     Adj.          Positive impact on Adj.
 with BMZ
                                                                                                  EBIT          EBIT due to full
                                                                                                                consolidation

30   Capital Markets Day 2020                                                                            © 2020 KION GROUP AG. All rights reserved.
1 | Focused Investments to Strengthen Leadership
Enhanced capacity in EEU and IT architecture

                                                                Financial impact                Financial benefits
                  Rationale                                    Short-term
                                                                short-termimpact                Mid-term
                                                                                                mid-termimpact

                                                               Capex   ~EUR 80mn, thereof       Revenue        Growth enabler
                                                                       ~EUR 50mn in 2020
                  − Capacity increase
 IT&S: New        − Increase in flexibility and productivity
 Poland             by product shifts                          Adj.    Initial setup expenses   Adj.           Improvement through
 Plant                                                         EBIT    affecting margin         EBIT           efficiency and scale
                                                                                                               in counterbalance
                                                                                                               trucks

                  − Global harmonization of IT landscape       Adj.    Higher expenses for IT   Adj.           Improvement through
                    to drive efficiency                        EBIT    projects                 EBIT           efficiency
 IT               − Preparation of S/4HANA roll-out
 enablement − Digitalization of internal processes
 spend

31   Capital Markets Day 2020                                                                          © 2020 KION GROUP AG. All rights reserved.
2 | Strategic Investments into Areas of Growth
China and DAI – capturing value potential from growth areas

                                                             Financial impact                  Financial benefits
                  Rationale                                 Short-term
                                                             short-termimpact                  Mid-term
                                                                                               mid-termimpact
                                                            Capex   ~EUR 100mn for new         Revenue       Additional sales of
                                                                    plant, thereof ~EUR 45mn                 ~EUR 500mn p.a. by
                                                                    in 2020                                  2025
 Growing          − New value product range (2022)
 in China         − High productivity due to automation
                                                            Adj.    Initial setup expenses     Adj.          Improvement towards
                                                            EBIT    affecting margin           EBIT          IT&S average

                                                            FCF     Cash-out in 2020 of        Revenue       Growth driven by
                  − Software as differentiating factor in           ~EUR 97mn                                software capabilities
 DAI                automation business
 acqui-           − Attractive business and transaction
                    structure                                                                  Adj.          Fully consolidated, DAI
 sition
                                                                                               EBIT          with attractive Adj. EBIT
                                                                                                             Margin

32   Capital Markets Day 2020                                                                         © 2020 KION GROUP AG. All rights reserved.
3 | Relentless Focus on Profitability
Group-wide performance program (PEx) in place to drive efficiencies

Program objectives                                           Financial impact (Adj. EBIT), in EUR mn
                                                               Headwinds1

                                                               Program gross effect
− Compensate cost inflation1

                                                                        Gross Adj. EBIT impact in 2021
− Capture additional savings potential                                 ~EUR 150mn, net impact ~EUR 50mn with
                                                                              ~EUR 100mn headwinds

                                                                   2019                    2020e                            2021e
− Improve cost flexibility
                                                             Group-wide program
                                                             Steered by top management
                                   PEx program compensated 2019 headwinds and is expected to deliver
                                                ~EUR 50mn net Adj. EBIT impact in 2021
1Wage   increases and inflation effects

33      Capital Markets Day 2020                                                                       © 2020 KION GROUP AG. All rights reserved.
Summary Perspective on KION’s Adj. EBIT
Short-term margin impact to position KION for the future
                                                                                        Short-term                               Mid-term
                                                                           2020e CapEx    2020e Adj. EBIT Margin      Revenue         Adj. EBIT Margin
                          New                     New truck generations,                  Margin
                          products                new technologies1                       dilutive

                                                                            ~EUR 15mn     No major
                          Li-Ion JV               Cost optimization
                                                                              in 2020     impact
 Focused
 investments                                                                EUR 50mn      Margin
                          Poland                  Capacity increase
                                                                             in 2020      dilutive
                                                                                                      Total impact:
                          IT                                                              Margin      ~0.5 - 0.8pp.
                                                  Efficiency and must-do                  dilutive
                          enablement                                                                     margin
                                                                                                        dilutive
                                                                            EUR 45mn      Margin
                          China                   Growing in China
                                                                             in 2020      dilutive
 Strategic
 Investments                                                                ~EUR 97mn     No major
                          DAI                     Strengthening software
                                                                              in 2020     impact

 Focus on                                                                                 Margin
                          PEx Program             Efficiency increase                     accretive
 Profitability

                                                    ~0.5 - 0.8pp. of Adj. EBIT Margin “invested” for growth prospects and
 KION Group
1Higher   depreciation and lower capitalization
                                                     efficiencies supporting mid-term top-line and Adj. EBIT Margin targets
34        Capital Markets Day 2020                                                                                     © 2020 KION GROUP AG. All rights reserved.
COVID-19 – Implications and Situation for KION
Status as of today

Potential implications and risks                                    Current situation at KION
− Epidemic assumed to peak in H1 2020,                              − No KION employee infected so far
  normalization towards year-end1                                   − All plants are running; plants in China slightly
− GDP impact visible for China in       20201;                        below planned capacity and with temporary
  IT&S market in China consequently                                   production delay due to closures
  expected to decline on a full year basis                          − Q1 results in APAC will be negatively
                                                     COVID-19
− Risk for health situation of workforce,                             impacted, catch up seems feasible until year
  potentially leading to closure of production,                       end depending on further development of
  sales & services branches, or challenges in                         epidemic
  global supply chain                                               − Nearly no impact on supply chain in EMEA so
                                                                      far, mitigation efforts ongoing

                                            KION-wide “taskforce” installed

                             Guidance for 2020 does not include any impact from COVID-19
1Oxford   Economics

35        Capital Markets Day 2020                                                         © 2020 KION GROUP AG. All rights reserved.
Guidance 2020
We are on track to deliver mid-term revenue and margin targets 2022

                                                                                                      Revenue / Adj. EBIT
Guidance Revenue and Adj. EBIT1, in EUR mn

                6,410                                         Revenue: slower truck sales from reduced 2019
                                          6,450 / +1%
                                          6,150 / -4%         order intake expected to be partly compensated by
                                                              higher service revenue
                        6.4                                   Adj. EBIT: spend related to areas of growth and
                            695                               short-term effects from depreciation / R&D
                                                 650 / -6%
IT&S                                             610 / -12%   capitalization expected to reduce Adj. EBIT in 2020
                     2019                2020e
                                          2,800 / +18%
                2,379                                         Revenue: strong growth in project business
                                          2,500 / +5%
                        6.4                                   expected based on order intake growth in 2019;
                                                 280 / +23%   service business growing
                            228
SCS                                              240 / +5%    Adj. EBIT: increase due to improved project
                                                              execution and scale
                     2019                2020e
1Exluding   potential COVID-19 impacts

36     Capital Markets Day 2020                                                          © 2020 KION GROUP AG. All rights reserved.
Guidance 2020 and Mid-term Targets 2022
We are on track to deliver mid-term revenue and margin targets 2022

                                                                                               xx%      Adj. EBIT Margin
Guidance Revenue and Adj. EBIT1, KION, in EUR mn
                                                                                                        Revenue / Adj. EBIT
                                                                       10-12%
                                                                       >10,000
                                                                                 We are confident we will
8,807                                      9,250 / +5%                           achieve our 2022 targets
                                           8,650 / -2%                           due to
                                                                                 − Continued SCS revenue growth
                                                                                   and accelerating IT&S revenue
                                                                                   growth following 2020
                                                                                 − Relentless focus on profitability
               851                                850 / 0%                       − Reversal of investment- and
                                                  770 / -10%                       depreciation / R&D capitalization
                                                                                   effects

     2019
1Exluding
                                         2020e                 2021e   2022e
            potential COVID-19 impacts

37     Capital Markets Day 2020                                                            © 2020 KION GROUP AG. All rights reserved.
Free Cash Flow 2020
Free cash flow impacted by higher cash-outs for capex and acquisitions

Key FCF drivers, in EUR mn
            Adj. EBIT 2019                          851
                    2020e                           770-850
                    1    Depreciation                         1   Higher depreciation primarily due to new product launches

 2   Delta Trade Working Capital                              2   Lower working capital increase compared to prior year

                             3 Taxes                          3   Higher tax payments due to profit increase in 2019

     Operating CF 2019                              846                 Operating cash flow in 2020 expected
                2020e                                                            to be on 2019 level

                             4 Capex                          4   Investments into new plants in Poland and China

                        5 Acquisitions                        5   Acquisition of DAI

                        FCF 2019              568
                          2020e          270-370

38    Capital Markets Day 2020                                                                © 2020 KION GROUP AG. All rights reserved.
Financial Performance
Strong cashflow performance enables dividend growth and deleveraging

     Op. Cashflow Conversion              Dividend                                  Leverage
     Op. Cashflow / Adj. EBIT             EUR / share                               INOD2 / Industrial Adj. EBITDA

     99%
     operating cashflow
                                           24%                    CAGR p.a.         2.0x                     INOD in 2019

                                                                                1
     conversion in 2019                                                 1.2 1.3     3.4
                                                                  1.0                           2.5             2.3
                                                        0.8 0.8                                                                 2.0
                                                0.6
                                          0.4

                                          13    14      15   16   17    18   19     16          17              18              19

     Strong operational performance and   Steady dividend growth since IPO          Continuous deleveraging following
     rigid cash management drive cash                                               Dematic acquisition
     conversion
1Subject   to approval at AGM
2Industrial  Net Operating Debt

39      Capital Markets Day 2020                                                                © 2020 KION GROUP AG. All rights reserved.
Value Creation Through 2022 and Beyond
Focus on disciplined execution and further profitable growth

     1               We have delivered and demonstrated resilience

     2               We will deliver a solid performance in 2020

     3               We embark on the next phase of value creation through
                     focused investments and performance improvements

     4               Our strong operational performance and cash flow enable
                     investments, dividends and deleveraging

40   Capital Markets Day 2020                                                  © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day
Agenda
                                   Speaker                           Time
CEO: Strategy Update               Gordon Riske                      10:30-11:10
CFO: Financial Agenda              Anke Groth                        11:10-11:30
Q&A                                       D                          11:30-11:50
Break                                                                11:50-12:35
IT&S Value Drivers                 Andreas Krinninger                12:35-13:10
     Deep Dive: Growing in China   Ching Pong Quek                   13:10-13:30
SCS Value Drivers                  Hasan Dandashly                   13:30-14:05
Mobile Automation                  Dr. Eike Böhm                     14:05-14:20
Q&A                                                                  14:20-14:40

41     Capital Markets Day 2020                         © 2020 KION GROUP AG. All rights reserved.
Questions
                                & Answers
42   Capital Markets Day 2020               © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day
Agenda
                                   Speaker                           Time
CEO: Strategy Update               Gordon Riske                      10:30-11:10
CFO: Financial Agenda              Anke Groth                        11:10-11:30
Q&A                                                                  11:30-11:50
Break                                     D                          11:50-12:35
IT&S Value Drivers                 Andreas Krinninger                12:35-13:10
     Deep Dive: Growing in China   Ching Pong Quek                   13:10-13:30
SCS Value Drivers                  Hasan Dandashly                   13:30-14:05
Mobile Automation                  Dr. Eike Böhm                     14:05-14:20
Q&A                                                                  14:20-14:40

43     Capital Markets Day 2020                         © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day
Agenda
                                   Speaker                           Time
CEO: Strategy Update               Gordon Riske                      10:30-11:10
CFO: Financial Agenda              Anke Groth                        11:10-11:30
Q&A                                                                  11:30-11:50
Break                                                                11:50-12:35
IT&S Value Drivers                 AndreasDKrinninger                12:35-13:10
     Deep Dive: Growing in China   Ching Pong Quek                   13:10-13:30
SCS Value Drivers                  Hasan Dandashly                   13:30-14:05
Mobile Automation                  Dr. Eike Böhm                     14:05-14:20
Q&A                                                                  14:20-14:40

44     Capital Markets Day 2020                         © 2020 KION GROUP AG. All rights reserved.
Industrial Trucks and Services
Highlights

                   Exposure to attractive markets with products and services addressing
     1             core needs of customers

                   New business growth driven by technology leadership of new
     2             product platforms, safety, energy and automation solutions

                   Resilient services growth through full life-cycle offering enhanced by
     3             digitalizing processes

     4             Continuous efficiency improvements, e.g., R&D, production
                   footprint, operations set-up, sales & service processes
     5
45   Capital Markets Day 2020                                                     © 2020 KION GROUP AG. All rights reserved.
Total Addressable Market
Continued growth across regions

Market Size, in EUR bn                                              CAGR   Market Size by Region, in EUR bn
                                                                             2019
                                                                             2027e

                                                     56

        40                                                                           22
                                                                                                                                  19
                                                                              16
                                                                                                      14                13
                                                                                                11

      2019                                       2027e                         EMEA           Americas                   APAC
Source: KION market model, numbers may not add up due to rounding

46     Capital Markets Day 2020                                                                            © 2020 KION GROUP AG. All rights reserved.
Market Drivers
KION’s answers shape the market and address customer needs

                                                             Our customers need to…
                          …move more SKUs1 at higher               …while fulfilling sustainability
                          throughput, with less space…             expectations …                     …and reducing accidents

                            Warehouses must be close to            Regulatory pressure and social     Safety is a significant concern
     Industry               customers offering high flexibility,   awareness to reduce carbon         for material handling
     Trends                 responsiveness and throughput          footprint                          operations

     Customer              Higher                                                                     Increased
     Needs                 efficiency                              Greater                            safety
                                                                   sustainability

     KION‘s                 Highly efficient and innovative                                           New safety features and
                                                                   Broad Li-Ion and Fuel-Cell
     Answers                products and services                                                     automation
                                                                   product portfolio for a green
1Stock   Keeping Unit
                                                                   supply chain
47       Capital Markets Day 2020                                                                        © 2020 KION GROUP AG. All rights reserved.
Competitive Advantage
Three pillars driving profitable growth of KION’s IT&S segment

           Best operational             Covering full life-cycle with    Modularizing products
            performance of trucks         innovative offering              Optimizing plant footprint
           Energy solutions offering    Growing continuously with        Efficient & flexible
           Safety solutions offering     resilient services                operations setup
           Mobile Automation            Digitalizing                     Improving sales & services
                                          customer-facing processes         processes

                    Technology                   Resilient                       Efficiency
                    Leadership                   Services                      Improvement

48   Capital Markets Day 2020                                                        © 2020 KION GROUP AG. All rights reserved.
Technology Leadership
KION’s new truck platforms enable future growth

                                                                           New truck platforms
                                                                           with 10-15 year lifecycle –
                                 Productivity   Performance
                                                                           derivatives in next years

                                                                           Digital twin
                                                                           allowing new feature sales
                                                                           and efficiencies
     Design to
      Service                                                 Efficiency   Enablers
                                                                           for expansion
                                                                           of market share

                                                                Safety     R&D depreciation
                                                                           increases due to product
Connectivity                                                               launches

49    Capital Markets Day 2020                                              © 2020 KION GROUP AG. All rights reserved.
Technology Leadership
KION’s safety offering reduces accidents in material handling

Truck accidents,                               KION’s safety offering
in Germany
                                                                                                                          Benefits to customers:
                                                 Structural
                                                 safety                                                                   ✓ Less accidents and collisions
                                                 equipment                                                                ✓ Lower downtime,
>    36,000Accidents p.a.
                                                                              Load Assist      Active Stability Control     higher productivity
                                                                                                                          ✓ Improved safety awareness
                                                                                                                          ✓ Legal protection of general
       with industrial trucks1                   Surroundings
                                                                                                                            managers
                                                 safety

                5
                                                 equipment
                                                                         Curve Speed Control        Surround View         Benefits to KION:
                                                                                                                          ✓   New way to approach customers
                                                                                                                          ✓   Focus topic for customers
      Fatal accidents p.a. –                     Safety
      all with forklift trucks1                                                                                           ✓   Sale of higher specified trucks
                                                 assistance
                                                 systems                                                                  ✓   High margin business
                                                                             Safety Guard        Safety Consulting

1Accident   statistics of the German statutory accident insurance (DGUV) of 2018

50     Capital Markets Day 2020                                                                                                     © 2020 KION GROUP AG. All rights reserved.
Technology Leadership
Li-Ion growth driving revenue and profit expansion

Shift from IC to E,                                                 Growing Li-Ion share,
Global units                                             CAGR       Electrified products, market mix by battery technology
                                                         2019-27

                                                           -1%                 7%
                                            24%
IC-trucks           36%
                                                                                                                        Li-Ion
                                                                                                          70%
                                            44%           +6%                                                           trucks
WH ped.             37%                                                       93%

WH rider                                     9%           +4%                                                           Other
                    9%
                                            23%           +8%                                             30%           electric trucks
 E-trucks           17%
                    2019                   2027e                              2019                       2027e

     ✓ Similar new business margin for E- and IC-                   ✓ Higher absolute gross profit of Li-Ion due to
       trucks                                                         higher price
     ✓ Aftersales profitability similar across                      ✓ No impact on aftersales revenue
       products
Source: KION market model, numbers may not add up due to rounding

51      Capital Markets Day 2020                                                                            © 2020 KION GROUP AG. All rights reserved.
Resilient Services
Covering full life-cycle allows growing with customers' businesses

Aftersales                                     Revenue share   Rental
High availability for customers                    FY19        Superior flexibility with Short-Term Rental
− >18,0001 highly qualified experts globally                   − Largest fleet in EMEA
− Remote condition monitoring                                    with ~90,0001 trucks
− Densest network                                              − Flexibly adjust truck fleet to customer
− High first-time-fix rate                                       demand
                                                        30%
− In-van delivery of
  parts                                        52%
− Shared distribution
  centers                                             18%2

Used Trucks
− High performance and quality                                 Resilience from Long-Term Rental
− Dedicated refurbishment centers                              − High share of Long-Term Rental; most
− Online shop3                                                   with full-service contract
1Directand Indirect Network
2Used Trucks including Others
2Currently piloted in Germany and France

52        Capital Markets Day 2020                                           © 2020 KION GROUP AG. All rights reserved.
Resilient Services
Digitalization supports customers’ productivity and KION’s efficiency

 Remote health monitoring               Remote technician support                  Benefits to customers:
 − Truck stops from wear &              − Efficiency increase through
   tear are avoided                       multimedia dialogue of on-site           ✓ Less downtime
 − Repairs and                            service technician and back-office       ✓ Higher productivity
   maintenance planned                    specialist                               ✓ Lower aftersales cost
   more efficiently                     − Reduces downtime for customers
                                                                                   Benefits to KION:
                                          through improved first-time-fix rate
                                        Digital service ordering (app)             ✓ Higher first-time-fix
                                        − Request service support &                  rate
                                          monitor status                           ✓ Lower repair time
                                        − Improve convenience and                  ✓ Higher aftersales
                                          transparency                               profitability
                                        − Developed inhouse at KION’s              ✓ Higher customer
                                          Digital Campus                             satisfaction

53   Capital Markets Day 2020                                                    © 2020 KION GROUP AG. All rights reserved.
Efficiency Improvement
Modularizing products for efficient R&D and reducing complexity

                                                               ✓ Scaling innovation
 Drive axles                    Masts   Batteries   Chargers     across all KION
                                                                 brands
                                                               ✓ Allowing efficient
                                                                 procurement
                                                                 through larger scale
                                                               ✓ 15% less part
                                                                 numbers reducing
                      Modular concept: commonality               complexity
                       across new truck platforms
54   Capital Markets Day 2020                                         © 2020 KION GROUP AG. All rights reserved.
Efficiency Improvement
Growing capacity in lower-cost countries and increasing automation

                                                                              2022e
                                                  Eastern Europe               17%
 Production                      2014
 Capacities
 EMEA                                             Western Europe               83%
 for Counterbalance- /
 Warehouse- Trucks
 (w/o components)

 Single-Brand
 Factories                        5                                               2
 Multi-Brand
 Factories                        1                                               5
 Degree of
 Automation                      Low                                           High

55    Capital Markets Day 2020                                     © 2020 KION GROUP AG. All rights reserved.
Efficiency Improvement
Increasing efficiency and flexibility of operations setup

     Flexibility                                                                     Capacity
     ✓    One mixed-model line                                                       ✓ New greenfield site
                                                                        Kołbaskowo
          for E- and IC-trucks                       Hamburg                         ✓ Annual volume of
     ✓    High flexibility for                                                         >12,000 units
          changing demand           Aschaffenburg
                                                                  Stříbro            ✓ Cost structure enables
                                                           Reutlingen
                                                                                       new products for price-
     Efficiency                                                                        sensitive markets
     ✓    Fully automated welding    Châtellerault                                   ✓ Attractive labor rates
          robots line
                                                        Luzzara
     ✓    Automated powder-
          coating
     ✓    Further automation of
          logistics and assembly
          lines

56       Capital Markets Day 2020                                                        © 2020 KION GROUP AG. All rights reserved.
Efficiency Improvement
Multiple initiatives increasing sales and services efficiency

 CRM                                                         Introducing new groupwide CRM
 Harmonization                                               Digitalizing for process efficiency

                                                             Consolidating back-office support in
 Backoffice                                                   Germany and United Kingdom
 Consolidation                                               Reducing cost

                                                             Delivering parts overnight
     Spare parts                                              into service vans
     In-Van Delivery
                                                             Focusing technicians’ time

                                  Measures tracked as part of PEx program
57     Capital Markets Day 2020                                                 © 2020 KION GROUP AG. All rights reserved.
IT&S Financials
Margin dip in 2020 to reverse after initial short-term investments

Revenue and Adj. EBIT1, in EUR mn                                     Revenue / Adj. EBIT     Mid-Term outlook

                                                             Revenue:                       Revenue:
 6,410                                    6,450 / +1%         Impacted by lower             New business ex-
                                                               order intake in 2019           pected to grow again
                                          6,150 / -4%                                         from 2021 onwards
                                                              Partly compensated by
                                                               higher services               Growth in services
                                                               revenue                        revenue will continue

                                                             Adj. EBIT:                     Adj. EBIT:
               695                                            Short-term effects from       Short-term effects will
                                                650 / -6%      depreciation / R&D             reverse mid-term
                                                610 / -12%     capitalization                Performance program
                                                              Setup costs for                will drive profitability
                                                               investments
     2019
1Exluding
                                         2020
            potential COVID-19 impacts

58     Capital Markets Day 2020                                                                   © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day
Agenda
                                   Speaker                           Time
CEO: Strategy Update               Gordon Riske                      10:30-11:10
CFO: Financial Agenda              Anke Groth                        11:10-11:30
Q&A                                                                  11:30-11:50
Break                                                                11:50-12:35
IT&S Value Drivers                 Andreas Krinninger                12:35-13:10
     Deep Dive: Growing in China          D Quek
                                   Ching Pong                        13:10-13:30
SCS Value Drivers                  Hasan Dandashly                   13:30-14:05
Mobile Automation                  Dr. Eike Böhm                     14:05-14:20
Q&A                                                                  14:20-14:40

59     Capital Markets Day 2020                         © 2020 KION GROUP AG. All rights reserved.
KION in China at a Glance
Strongly positioned to enter a new era in China

27years No. 1                                                                          ~3,700
in China                                     in foreign brand                          dedicated employees
                                             market share1                             (~1,900 in sales &
                                                                                       services and ~350 in R&D)

 2          unique
            brands
 (Linde, Baoli) with
                                             ~90%
                                             of products and
                                                                                       ~300
                                                                                       Sales and/or
 comprehensive                               components locally                        services locations
 product portfolio                           manufactured and
                                             sourced
1Share   amongst foreign (non-domestic) brands in China, according to CITA industry data

60       Capital Markets Day 2020                                                                                  © 2020 KION GROUP AG. All rights reserved.
A New Era in China
Highlights

                                Chinese market with unrivaled growth potential – KION with a
      1                         comprehensive strategy for growing in China

                                Longstanding experience, trusted brands and shareholder support –
      2                         KION ready to compete successfully with incumbents in China

      3                         New products, go-to-market strategy, new factory and R&D
                                footprint – will also enable customer wins in European markets

                                Investments of ~EUR 100mn financed from cash flow –
      4                         KION setting the course for profitable growth

61   Capital Markets Day 2020                                                           © 2020 KION GROUP AG. All rights reserved.
A New Era in China
Significant upside potential for KION in China

              Global GDP 2019                                     Industrial Truck Market 2019    KION 2019 (Order Intake1)
                                                                         (Order Intake1)

                                               China                                      China                       14% China
                                  17%
                                                                                 >30%

                 83%
China Forklift Market Growth
Single largest forklift market with attractive growth outlook

Chinese forklift market,                CAGR
order intake (in k units)
                                               − Single largest forklift market
                                                covering >30% of world market

                                 473           − Rapid market growth
                                                in last five years
              274                              − Optimistic outlook, yet at a
                                                 normalized rate
                                                driven by slow-down of economy
                                                and maturing market
             2014                2019
Source: WITS/FEM

63    Capital Markets Day 2020                                        © 2020 KION GROUP AG. All rights reserved.
Key Trends in China
Trend towards value-for-money and electrification

         Growing “Value”-Segment                        Accelerating Electrification
         − No longer pure cost focus for customers      − Stricter environmental regulations
         − Comprehensive buying decisions (i.e. TCO1)   − Improving TCO1 due to declining cost
           by customers are increasing                    of Li-Ion batteries
         − Brand and customer experience                − Warehouse truck segment continuously
           becoming more important                        growing at double-digit rate
                                                        − 2025: ~40-50% of new counterbalance
1Total   Cost of Ownership
                                                          truck sales forecasted to be electric trucks2
2Based    on KION internal estimates

64        Capital Markets Day 2020                                               © 2020 KION GROUP AG. All rights reserved.
China Growth Strategy
Comprehensive product, go-to-market, and production strategy

New                                Sales Network                   New Plant and
Products                           Expansion                       R&D-Center
New developments with focus on     Increased market coverage and   State-of-the art factory and R&D-
value-segment and ECB1 trucks      synergies with Weichai          “Global Center of Excellence for
                                                                   Value”

1Electric   Counterbalance

65      Capital Markets Day 2020                                             © 2020 KION GROUP AG. All rights reserved.
New Products
Four key enablers to ensure competitiveness of future products

1                                                     3
     Electric Forklift Competence                     Modular Platform Design
     − Technology leader                              − Cost-efficient platform with
       in electric powertrain                           common modules to derive new
     − Local Li-Ion battery development                 products
       in cooperation with Weichai New                − Enabler for economies of scale
       Energy                                Key
                                           Enablers

2                                                     4
     Experience in Value Market                       “Tailor-made” Local Organization
     − Linde Smartline with strong brand              − Local organizational setup to meet
       position and awareness introduced                requirements in Chinese market
     − Baoli “value ECB1 line”                        − Local development and local
       well received by market                          supply chain – “from China, for
                                                        China and the World”
1Electric   Counterbalance

66      Capital Markets Day 2020                                       © 2020 KION GROUP AG. All rights reserved.
Sales Network
Significant network expansion and synergies with Weichai

                                                                   Sales Channels           Synergies
                                                   Circum-bohai
                                                                   − Market coverage        − Cross-selling by
                                Jing-Jin-Ji zone     Sea zone
                                                                     increased                leveraging access to
                                                                     geographically           Weichai customer base

       One Belt
                                                                   − Key economic           − Leveraging existing
       One Road                                                      development areas        service points, parts
                                                                     in focus                 distribution centers and
                                                                   − KION dealer approach     dealerships
               Yangtze River                       Yangtze River     (multi-brand)
                Basin zone                          Delta zone

67   Capital Markets Day 2020                                                                 © 2020 KION GROUP AG. All rights reserved.
New Plant
State-of-the-art production plant and R&D center

New Plant                           R&D Center
− Production capacity for           − Future “Global Center of
                                                                                Jinan
  future growth                       Excellence for Value”
− Located in Jinan Lai Wu             for counterbalance products
  (Shandong province)               − Complementing current
− 223,000 m² – equivalent to          APAC R&D centers
  more than 31 soccer fields          in Xiamen, Jingjiang, and
− ~EUR 100mn investment               Pune
− Production start in 2022,
  construction start in late 2020
− Joint venture between KION
  (95%) and Weichai (5%)

68   Capital Markets Day 2020                                       © 2020 KION GROUP AG. All rights reserved.
China Growth
Clear aspiration to more than double volume and revenue in China by 2025

                                2019
                                 by   2025
                                 Double-digit Market Share,
                                      growing from single-digit

                                 Double Volume & Revenue
                                 Double-digit EBIT Margin,
                                      growing from single-digit
69   Capital Markets Day 2020                                     © 2020 KION GROUP AG. All rights reserved.
Capital Markets Day
Agenda
                                   Speaker                           Time
CEO: Strategy Update               Gordon Riske                      10:30-11:10
CFO: Financial Agenda              Anke Groth                        11:10-11:30
Q&A                                                                  11:30-11:50
Break                                                                11:50-12:35
IT&S Value Drivers                 Andreas Krinninger                12:35-13:10
     Deep Dive: Growing in China   Ching Pong Quek                   13:10-13:30
SCS Value Drivers                         D
                                   Hasan Dandashly                   13:30-14:05
Mobile Automation                  Dr. Eike Böhm                     14:05-14:20
Q&A                                                                  14:20-14:40

70     Capital Markets Day 2020                         © 2020 KION GROUP AG. All rights reserved.
Supply Chain Solutions
Highlights

     1             Steady growth as automation transforms supply chains and empowers
                   new business models

     2             Extensive vertical depth and global scale to support our customers

     3             Standardization and execution speed allow us to outpace market growth

     4             Services enable lifelong partnership with our customers

     5             Technology and software driving intelligent supply chains;
                   DAI furthers Dematic’s competitive position

71   Capital Markets Day 2020                                                      © 2020 KION GROUP AG. All rights reserved.
Trends and Impacts
  The future of supply chain requires speed, flexibility, and accuracy

Urbanization                                   Speed                             Variety                        Omni-channel                                   Automation

   55%                                      2.5                               350mn                          USD 6.5tn                                               10%

 Of global population                     Days max. accepted                     SKUs handled                        Retail e-commerce                           Fully automated
    lives in cities1                        shipping time2                   by large e-commerce                      spend by 20234                            warehouse globally5
                                                                                    player3
  1U.N.   World Urbanization Prospects Report, 2018; 2Dimensionsmail Research, 2019; 3Dematic Estimates; 4National Retail Federation, 2019; 5THLee & Partners, 2019

  72       Capital Markets Day 2020                                                                                                             © 2020 KION GROUP AG. All rights reserved.
Total Addressable Market
Industry trends driving strong automation growth across regions

Market Size, EUR bn                       CAGR   Market Size by Region, EUR bn

                                                                  EMEA   Americas        APAC

                                   59

                                                                                     28%
                                                     26%                                                    35%
                                                                  36%
              32                                           32                                   59

                                                       38%
                                                                                             37%

           2019                   2027e                    2019                                 2027e
Source: KION Market Model

73     Capital Markets Day 2020                                                © 2020 KION GROUP AG. All rights reserved.
Dematic at a Glance
Leading automation solution industry with hardware and software
Mission: Provide best-in-class vertical market-based, intelligent supply chain solutions, by integrating our
    hardware and software capabilities to deliver market leading flexibility, reliability, and throughput

                                                         Vertical Markets

     Software & IoT                                                                                         Mechatronics

                                                             Dematic

     Project                                                                                      Global Engineering
     Management                                                                                    & Manufacturing
                                                        Lifecycle Services

                                  Dematic helps to deliver ~18.5 million parcels worldwide every day
74     Capital Markets Day 2020                                                                 © 2020 KION GROUP AG. All rights reserved.
Dematic Product Portfolio
Helping customers with the best solutions

                Conveyor Systems               Storage Systems
        Dependable, cost-effective product     Storage, retrieval and sequencing;
                                 transport     buffering, racking and shelving

           Sortation Systems                          Robotic Palletizing &
        Diverse product handling, high                Depalletizing
                           throughput
                                                      Automated and ergonomic palletizing
                                                      and depalletizing

                         AGV Systems               Workstation Systems
 Lights-out order fulfillment, and reliable,       High-speed, high-volume designs
    autonomous mobile robotic solutions            for worker efficiency

75    Capital Markets Day 2020                            © 2020 KION GROUP AG. All rights reserved.
Global Capability
Our global presence enables us to be where our customers need us
     AMERICAS
                                  EUROPE
                                  18 Locations                     >8,900 Employees
                                  ~2,800 Employees
                                                                          Countries with active
                                                                   29     presence

 AMERICAS                                                          11 Manufacturing locations
 26 Locations
 ~4,900 Employees

 Key
                                                                   >3,000 Engineers
 • Global Head Office
                                                APAC
 • Regional Head Office
                                                13 Locations
                                                                   >50       Service locations
 • Sales/Services location                      ~1,200 Employees
                                             APAC
 • Country with Sales/Services
   presence                                                        >6,000 Installed projects

76     Capital Markets Day 2020                                      © 2020 KION GROUP AG. All rights reserved.
Execution Excellence
Regionalization and standardization drive speed, growth & profitability

       Upfront Engagement           Standardized Solutions         Regionalized Fulfillment

                   Sizing

             Modelling

        Concepting

      Simulation

     Extensive upfront customer   Integrated range of high-mid   Rapid on-site readiness by
     engagement in simulating     automation and software        delivering all products from
     and concepting the right     solutions (pre-configured)     regional sources
     solution

77     Capital Markets Day 2020                                           © 2020 KION GROUP AG. All rights reserved.
Vertical-based Value Enablement
We have a clear view of customers and their vertical challenges

                                  E-commerce                      Apparel           Grocery / Food &                   General
 Verticals
                                                                                       Beverage                      Merchandise
 SCS Market
                                      +14%                           +6%                        +7%                            +7%
 CAGR
 (’19-’27e)1

                         −     Omni-channel fulfillment   − Subscription & rental   − Click & collect and       − Multi-format distribution
                         −     Speed & accuracy             business models           growing trend of edge-      model
 Drivers                 −     Returns                    − Omni-channel              fulfillment               − Omni channel fulfillment
                         −     Inventory optimization     − Second-hand/re-sale     − Network optimization
                                                                                    − Chill & Freeze
                         − mPick / AutoStore GTP          − Pouch / Garment on      −   Micro-Fulfillment       − Robotic Picking
 Key                     − Pouch / Garment on               Hanger                  −   AMCAP                   − Micro-Fulfillment
 Technology                Hanger                         − mPick GTP               −   Freezer AGVs            − Pouch / Garment on
                         − Crossbelt Sorters              − Crossbelt Sorters       −   Pallet AS/RS              Hanger

 Customer
 Examples
1Source:   KION market model

78     Capital Markets Day 2020                                                                                © 2020 KION GROUP AG. All rights reserved.
Growth Across Verticals
Customer Example: Execution at scale for omni-channel fulfillment

                                            − Omni-channel fulfillment from >10mn units in inventory that
                                 Leading      represents >700,000 SKUs
                                            − State-of-art pouch solution, return solution along with a
                                 Luxury
                                              comprehensive annual service contract
                                 Store
                                 Retailer    Complex integration with comprehensive software
                                                           & service capability

     Account Overview

− Solution: Omni-Channel
  Distribution Center                           40%                >50 aisles                       500,000
− Size: >1.0mn ft2 / >90k m2                   e-commerce               largest DMS                    units to be
                                            return processing      installation in Dematic          shipped per day
                                                                            history

79    Capital Markets Day 2020                                                      © 2020 KION GROUP AG. All rights reserved.
Growth Across Verticals
Customer Example: Micro-Fulfillment enabling click & collect in grocery

     Speed                                                                 The Dematic Micro-Fulfillment system is our
                                                                            latest solution to help our customers meet
                                                                            aggressive growth strategies for omni-
                                                                            channel product distribution
                                                                           Micro-Fulfillment supports their new ‘click &
                                                                            collect’ customer program

     Standar-
     dization
                                   Account Overview

                                 − Client since: 2010                  15 Min              12 weeks                      3,500
                                 − Solution: Grocery                   order fulfillment   installed & store          orders handled
                                 − Size: 15,000   ft2 /   1,400   m2         time                ready                   per week

80    Capital Markets Day 2020                                                                        © 2020 KION GROUP AG. All rights reserved.
Lifecycle Services
Comprehensive value based life-cycle partnership

 Expand Margin by Improving Service Mix                                                                    Drive Customer Outcomes
                             Life-cycle based offering for customers                                          Modernization & upgrades for a
                                                                                                                      major retailer
                                   Remote          Digital                         Consultancy
                                   Services       Services                           & Training
 Resident                                                                                                     43        +26%                      +7%
 Services                                                                                                    Sites     Parts spend             Throughput

                                                                                     Modernization
                                     Field              Spare                          & Upgrades                  Predictive IIoT1 based
                                    Services            Parts
                                                                                                                maintenance for a fortune 500
     Large installed base                                        Outpace market growth
                                                                                                                         industrial
                                                     CAGR
     >6,000 Installed projects                    (2019-2022e)    ✓ Systematically growing the service
                                                                                                            40%        50%
     17,000 Multi-Shuttle systems                   +9%
                                                                    mix with focus on value creation for
                                                                    customers                              Unplanned     Cost of
                                                                                                                                               5 weeks
                                                                                                           downtime     inventory               Pay-back
     1,000 Mini-loads                                             ✓ Complementing our service offering
                                                  Services
                                                   Market           with advanced digital capabilities
     12,000 Cranes
1Industrial   Internet of Things

81      Capital Markets Day 2020                                                                                          © 2020 KION GROUP AG. All rights reserved.
Supply Chain Solutions Ecosystem
Software is driving the on-demand economy

 Digital Portfolio                     Digital Twins, Predictive Models, …                         Digital / ERP
                                                                                                   Supply Chain
 Enterprise Resource Planning (ERP)    Business, Accounting, Procurement, …

                                       Order & Demand Management,
 Supply Chain Execution                Transportation & Retail Management

 Warehouse Management System (WMS)     Labor, Inventory, Operations Mgmt. …

 Warehouse Control System (WCS)        Material Flow, Execution Optimization, …
                                                                                                    Warehouse
 Programmable Logic Controller (PLC)   Sensors, Actuators, …                                         Market Demand
                                                                                  Not only moving items, but more and more moving data

82   Capital Markets Day 2020                                                                          © 2020 KION GROUP AG. All rights reserved.
Deep-Dive Software – Dematic’s New Offering
Furthering competitive positioning with the acquisition of DAI

Software Portfolio                     Competitive Position

                                             Software
 Digital Portfolio
                                             Providers        ✓ Integrated software
                                                                portfolio, one provider
 Supply Chain Execution
                                                              ✓ Complete visibility
                                             Integration
                                             Required         ✓ Real-time connected
 Warehouse Management System (WMS)

                                                                software
 Warehouse Control System (WCS)
                                                              ✓ Enhanced operational
                                             Logistics
                                             Automation         efficiency
 Programmable Logic Controller (PLC)         Providers

83   Capital Markets Day 2020                                                © 2020 KION GROUP AG. All rights reserved.
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