The segments and their products and services

The KION Group is represented in the market by three global brands – Linde, STILL and Baoli – and three regional brands: Fenwick (France), OM STILL (Italy) and Voltas MH (India). While the brand companies have full operational and commercial responsibility within their markets, KION GROUP AG is the strategic management holding company and is responsible for the groupwide strategy and groupwide business standards. >> Table 012

For internal management purposes, the KION Group has divided its business into operating segments that correspond to the reportable segments, as required by international financial reporting standards (IFRS 8).

Linde Material Handling (LMH) segment

The Linde Material Handling (LMH) segment encompasses the Linde, Fenwick and Baoli brands.

Linde is a global premium brand and a technology leader. Among its other selling points, it has decades of experience with hydrostatic drive technology and meets customers’ highest requirements regarding technology, efficiency, functionality and design. The product portfolio ranges from warehouse trucks to extra heavy-duty trucks and caters to all of the major application areas. Linde has been developing and manufacturing electric drive systems for decades and makes the resulting expertise available to external customers for use in a variety of applications.

In France, Linde products are sold under the Fenwick brand.

The Baoli brand covers the value and economy segments in China and other growth markets in Asia, eastern Europe, the Middle East, Africa and Central and South America.

STILL segment

The STILL and OM STILL brands are grouped in the STILL segment. STILL is predominantly a global premium provider of trucks with electric and diesel-electric drives. It mainly focuses on the European and Latin American markets.

The segment’s portfolio consists of forklift trucks and warehouse trucks plus associated services. STILL has also positioned itself as a leading provider of intelligent intralogistics solutions, offering trucks and fully integrated warehouse systems, including automation and fleet management solutions.

Financial Services (FS) segment

The purpose of the Financial Services (FS) segment is to act as an internal funding partner for LMH and STILL, providing finance solutions that promote sales. FS activities include the internal financing of the short-term rental business of the LMH and STILL operating segments, the financing of long-term leasing business for external customers of the KION Group and the related risk management. In the large sales markets with a high volume of financing and leasing, this business is handled by legally independent FS companies.

When long-term leasing business is being conducted, FS itself acts as the contractual partner to external customers and offers various financing models.

Operational responsibility for the short-term rental business (short-term fleet) lies with the LMH and STILL brand segments. FS acts as the contractual partner to the brand segments, providing the financing for this short-term fleet. FS refinances both long-term leasing with end customers and the short-term fleet mostly on the basis of sale and leaseback agreements.

In addition, the bulk of sales financing for external customers is offered indirectly, with an external leasing company to which the business is referred by the KION Group acting as lessor rather than the KION Group. The financial services provider purchases the truck from the KION Group and provides the finance to the end customer. The KION Group carries out the majority of the servicing for the truck and, once the financing has expired, assists with its reconditioning and remarketing.

Other segment

The Other segment mainly comprises holding companies and service companies, the latter providing cross-segment services such as IT and logistics. The Indian subsidiary Voltas Material Handling Pvt. Ltd. (referred to below as Voltas MH) also belongs to this segment. Voltas MH manufactures diesel trucks and electric forklift trucks as well as warehouse trucks for the Indian market. It has a network of more than 50 dealers providing sales and service.