Segment Results

All segment data provided is before consolidation effects which reflect cross-segment revenue, internal deliveries of inventories, income from investments and other cost transfers.

Overview

All segments showed a solid performance in their markets. The LMH segment which includes the brands Linde, Fenwick and Baoli grew its order intake by 9% to 25,500 units (Q1/2011: 23,400 units). STILL had a slight decline in global order intake of 1% to 13,100 units (Q1/2011: 13,200 units) mainly influenced by market conditions in Italy and an overall weaker demand for warehouse trucks. Additionally, the planned relocation of product lines as part of the footprint project led to minor disruptions in the production process. Total order intake on a value base, which includes all lines of business, grew for LMH by 6% to €812 million (Q1/2011: €768 million). The order intake for STILL fell by 4% from €447 million in the previous year period to €429 million in Q1/2012.

The following table shows all major key figures by segments as a percentage of the KION Group in total:

LMH Segment: Revenue

The LMH segment increased its revenue by 17%, from €661 million in Q1/2011 to €774 million in Q1/2012. High demand for LMH’s offerings applied to the new truck business as well as the service offering, including spare parts. LMH segment’s revenue benefited from the sustained growth in the German market and additionally from the growth in Asia and Eastern Europe.

LMH Segment: EBIT, Adjusted EBIT and Adjusted EBITDA

In Q1/2012, EBIT increased by €27 million to €79 million due to a strong demand for new trucks, services and spare parts from the LMH segment and to a strong performance from hydraulics. In Q1/2012, EBIT was impacted by Non-recurring Items of positive €6 million, compared to negative €2 million in Q1/2011. As a result of the remeasurement of the equity investment (49 per cent) in our UK dealer Linde Creighton Ltd. on the date of acquisition of the remaining 51 per cent of outstanding shares end of February 2012, positive €5 million were recognized in the income statement as a Non-recurring Item. Additionally we sold in Q1/2012 property due to the closure of the plant in Basingstoke, UK, with a positive result of €3 million. In Q1/2011 Non-recurring Items mainly related to relocation costs and severance payments as part of the KIARA Restructuring Program.

Due to the strong operating performance of the LMH segment, Adjusted EBIT increased by €20 million to €81 million in Q1/2012, compared to €61 million in Q1/2011. Adjusted EBIT Margin grew from 9.2% in Q1/2011 to 10.4% in Q1/2012. Adding back depreciation, amortization and impairment costs, the LMH segment achieved an Adjusted EBITDA of €124 million and an Adjusted EBITDA margin of 16.0%, compared to an Adjusted EBITDA of €104 million and an Adjusted EBITDA margin of 15.7% in Q1/2011.

STILL Segment: Revenue

Order intake decreased by 3.9% to €429 million in Q1/2012 due to minor disruptions caused by the planned product relocation as part of the footprint project. Revenue increased by 3.2% to €412 million in Q1/2012 compared to €400 million in Q1/2011 driven by a strong performance in the German market and growth in the Eastern European countries and Brazil.

STILL Segment: EBIT, Adjusted EBIT and Adjusted EBITDA

STILL segment’s EBIT increased by €5 million to €20 million in Q1/2012 due to improved general market conditions. In Q1/2012, EBIT was impacted by Non-recurring Items of €4 million, mainly due to restructuring expenses relating to the closure of our plants in Bari, Italy, and Montataire, France, and the relocation of the related products to our existing facilities in Luzzara, Italy; and Hamburg, Germany. Non-recurring Items for Q1/2011 totalling €3 million were mainly related to relocation costs, severance payments and expenses relating to the STILL/OM combination. Adjusted EBIT increased to €26 million, compared to €19 million in Q1/2011. Adding back amortization, depreciation and impairment charges, the STILL segment achieved an Adjusted EBITDA of €53 million and an Adjusted EBITDA margin of 12.9%, compared to an Adjusted EBITDA of €46 million in Q1/2011 and an Adjusted EBITDA margin of 11.5%.

Segment Other

The segment Other includes our KION Group IT services, logistics services, our head office and financing companies or financing functions in Germany, France, Spain and the United Kingdom as well as our regional brand, Voltas, in India. The consolidation effects reflect cross-segment revenue, inter-segment sales of inventories, income from investments and other internal cost transfers. Compared to Q1/2011 our new brand Voltas in India contributed to the increase of order intake and revenue.

Segment Other: Revenue

The segment Other increased its order intake and revenues by 25.3% to €59 million in Q1/2012 from €47 million in Q1/2011. The vast majority of both order intake and revenue was driven by internal services as described above. The other main reason for the increase is the order intake and revenue of our brand Voltas in India. See also the table “Segment Report” under Financial Statements.

Segment Other: EBIT, Adjusted EBIT and Adjusted EBITDA

EBIT in the segment Other amounted to negative €8 million in Q1/2012, compared to negative €7 million in Q1/2011. The Non-recurring Items in Q1/2012 amounted to €3 million compared to €2 million in Q1/2011. In both periods the Non-recurring Items were driven by consulting expenses. Adjusted EBIT amounted to negative €5 million in Q1/2012 compared to negative €4 million in Q1/2011. Segment Other achieved an Adjusted EBITDA of negative €1 million in Q1/2012 and in the corresponding prior year period Q1/2011.