KION GROUP GmbH : KION Group achieves record results in 2012 and further strengthens capital structure and position in emerging

   KION GROUP GmbH : KION Group achieves record results in 2012 and further
        strengthens capital structure and position in emerging markets

KION GROUP GmbH / KION Group achieves record results in 2012 and further
strengthens capital structure and position in emerging markets . Processed and
transmitted by Thomson Reuters ONE. The issuer is solely responsible for the
content of this announcement.

  *Order intake increases to €4.7 billion despite slightly weaker market
  *Revenue up by 8.2 per cent to €4.7 billion
  *Further improvement of operating performance in 2012: EBIT[1] margin
    reaches 9.3 per cent
  *Order book of over €800 million at the end of the year
  *Net financial debt reduced by a substantial €0.8 billion to €1.8 billion
  *Strategic partnership with Weichai Power strengthens position in Asia

Wiesbaden, 21 March 2013 - The KION Group successfully continued along its
growth trajectory in 2012, with consolidated revenue increasing by 8.2 per
cent to €4.7 billion. Adjusted EBIT[1] rose by 20.2 per cent to €438 million,
resulting in an EBIT[1] margin for the KION Group of 9.3 per cent.

Despite demand for industrial trucks falling by 3.1 per cent to 947,000 units
worldwide in 2012, the KION Group was able to expand its share of this market.
Its order intake for new trucks was almost the same as in 2011 at 141,700
trucks. The total value of the KION Group's order intake grew by 0.4 per cent
to €4.700 billion (2011: €4.682 billion). The order book as at 31 December
2012 was over €800 million.

"Structural improvements in recent years and increased capacity utilisation in
our plants contributed to these very encouraging results. Our more flexible
cost structure has enabled us to increase our profitability even more. We are
now in a far better position to absorb the impact of economic weakness than in
the past," said Gordon Riske, CEO of the KION Group, on publication of the
2012 financial statements. "We have continued to expand our footprint in
high-growth regions. The strategic partnership with Weichai Power has given
yet another boost to our position as the leading non-domestic supplier in
China. Coupled with our strong service business, this reduces our dependence
on regional fluctuations in demand."

Net financial debt at the level of KION Holding 1 GmbH amounted to €1,790
million at 31 December 2012, which was €841 million lower than at 31 December
2011. Factors contributing to this sharp decrease included not only inflows
from the Weichai transaction but also the strong operational performance
resulting in no small part from the cost-cutting programmes initiated in
previous years.

The KION Group's equity rose by €1,148 million year on year to €660 million
(31 December 2011: minus €488 million). The main contributing factors here
were the conversion of the shareholder loan into equity, as well as the
contribution made by Weichai Power for the acquisition of 25 per cent of the
shares in KION Holding 1 GmbH by way of a capital increase.

Business performance in detail

Consolidated revenue rose to a record €4.727 billion in 2012, up by 8.2 per
cent compared with the previous year (2011: €4.368 billion). The KION Group
generated approximately 74 per cent of this revenue outside Germany. Revenue
from business in new trucks grew by 12 per cent compared with 2011. The KION
Group's revenue from its service business increased by around 4 per cent to
€1.9 billion. The service business, which comprises aftersales activities as
well as services such as financing, fleet management and IT solutions,
generated more than 40 per cent of total revenue and is more independent of
the economic cycle than the new truck business.

The KION Group's earnings before interest and tax (EBIT[1]), adjusted for
non-recurring items, rose from €365 million in 2011 to €438 million in 2012 -
an increase of 20.2 per cent. This equates to an EBIT[1] margin of 9.3 per
cent. The KION Group therefore continued to improve its profitability.

In 2012 KION Group generated net income of €161 million (2011: minus €93
million) in the year under review. This increase of €254 million mainly
resulted from an increase in adjusted EBIT[1] and a net gain from the sale of
70 per cent of the hydraulics business to Weichai Power, partly offset by the
rise in income taxes.

Cash flow from operating activities grew to €414 million (2011: €387 million).
The net cash provided by investing activities (including acquisitions)
amounted to €104 million (2011: outflow of €153 million); consequently, free
cash flow climbed to €518 million (2011: €234 million).

Total expenditure on research and development (R&D) came to €120 million,
which equates to 2.5 per cent of revenue. In 2012, the KION companies were
granted a total of 63 patents and filed 96 new patent applications - a
moderate year-on-year increase after adjustment for the spin-off of the
hydraulics business.

The number of employees (including apprentices and trainees) decreased by 3.0
per cent to 21,215 as at 31 December 2012 (31 December 2011: 21,862
employees). The reduction is a result of spinning off the hydraulics business.
A total of 1,487 employees transferred to the new company Linde Hydraulics on
27 December 2012 and were therefore no longer included in the KION Group
headcount as at the reporting date.

Major strategic steps taken in 2012

The KION Group has implemented important measures to enable it to benefit from
a continued upturn in fast-growing regions. The strategic partnership with
Weichai Power Co., Ltd. opens up additional market opportunities in Asia: the
two companies are cooperating closely on industrial trucks and hydraulic drive
technology. In December 2012, Weichai Power became an anchor investor with a
25 per cent stake in KION Holding 1 GmbH by way of a capital increase, while
at the same time acquiring a 70 per cent controlling interest in Linde
Hydraulics.

In April 2012, KION had already set up KION South Asia Pte. Ltd. in Singapore
to unlock the huge potential of the markets in South and South-East Asia. The
new company is supporting the ongoing expansion of the local sales and service
networks of the Linde, STILL and Baoli brands.

In November 2012, the KION Group also acquired the outstanding shares in the
India-based Voltas Material Handling Pvt. Ltd. (VMH). As a result, the KION
Group is now the sole owner of VMH, which targets the populous Indian market.

The KION Group has also strengthened its presence in the South American
market. Since the third quarter of 2012, KION South America has been
manufacturing forklift trucks and warehouse technology for the regional
markets of the Linde and STILL brands in a completely new factory in
Indaiatuba/São Paulo, Brazil. By facilitating cross-brand cooperation and
pooling production in São Paulo, KION can leverage synergies and respond even
more flexibly to regional customer requirements.

Moreover, the KION Group has systematically expanded the sales and service
organisations of the Linde and STILL brands in eastern Europe. It also
invested in acquiring dealers in western Europe last year.

Outlook: further improvement to margins

Whereas the global market for industrial trucks in 2012 was around 3 per cent
down on the record level achieved in 2011, the KION Group expects demand to
recover slightly in 2013. Based on current macroeconomic forecasts and in view
of past market performance, the KION Group predicts an average annual growth
rate of about 4 per cent for the next five years.

In 2012 the KION Group laid the foundations for continued profitable growth in
subsequent years. As a result, consolidated revenue in 2013 should exceed the
figure for 2012 adjusted for the spin-off of the hydraulics business. In 2013
the KION Group anticipates that its new truck business will expand on the back
of sustained high demand for replacement investment - particularly in
developed markets - and increasing product sales in Asia and Latin America.
The service business should continue to contribute around 40 per cent of
consolidated revenue. The emerging markets are predicted to be a significant
factor in the growth of revenue again. As the market leader for industrial
trucks in Europe and thanks to its leading position in emerging markets, the
KION Group is excellently placed worldwide to benefit from future market
trends and developments. The partnership with Weichai Power is expected to
have a positive impact in the Chinese and Asian markets as early as 2013.

The good market position of the brands, the broad product portfolio, high
market share in the core markets in Germany and France, good positioning in
growth markets, growing service business, the measures taken towards a more
flexible cost structure as well as economies of scale should all contribute to
moderately improving the adjusted EBIT margin[1] in 2013 as well.

A slightly positive consolidated net income is expected for 2013, which should
also reflect the reduction in debt.

Following the reduction of net debt in 2012, the Company will also continue to
strive to reduce debt levels and optimise the funding structure in 2013.

[1] EBIT adjusted for KION acquisition items and non-recurring items

The company

The KION Group - comprising the six brands Linde, STILL, Fenwick, OM STILL,
Baoli and Voltas - is Europe's market leader in industrial trucks, the global
number two in the industry and the leading non-domestic supplier in China. The
Linde and STILL brands serve the premium segment worldwide. Fenwick is the
largest supplier of material handling products in France, while OM STILL is a
market leader in Italy. The Baoli brand focuses on the economy segment, and
Voltas is one of the two market leaders in India. The KION Group employed more
than 21,000 people and generated revenue of €4.73 billion in 2012.

Disclaimer

This press release contains forward-looking statements involving known and
unknown risks, uncertainties and other factors, many of which are outside the
control of the KION Group ('KION'), are difficult to predict and may cause
future developments to differ significantly from assumed developments as
expressed or implied in the forward-looking statements in this press release.

Any liability (including in respect of direct, indirect or consequential loss
or damage) of any member of KION with regard to the information contained in
this press release is expressly disclaimed. This press release does not
purport to contain all of the information that may be required to evaluate any
proposed transaction, and any recipient hereof should seek its own legal,
accounting and other relevant professional advice.

No member of KION undertakes any obligation or expects to update or revise
this press release, including forward-looking statements or any other
information contained herein, whether as a result of new information, future
events or otherwise.

For further information please contact

Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655
michael.hauger@kiongroup.com

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Source: KION GROUP GmbH via Thomson Reuters ONE
HUG#1687003

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KION GROUP GmbH
Abraham-Lincoln-Strasse 21 Wiesbaden Germany
 
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