Management system

Key performance indicators (KPIs)

The KION Group’s strategy, which centres on value and growth, is reflected in how the Company is managed. It uses four main key performance indicators (KPIs) to continuously monitor market success, profitability, financial strength and liquidity. The performance targets of the Group and the segments are based on selected financial KPIs, as is the performance-related remuneration paid to managers. Each month, the KPIs are measured and made available to the Executive Board in a comprehensive report. This enables the management team to take prompt corrective action in the event of discrepancies. >> Table 013

Key performance indicators

>> TABLE 013

in € million

Order intake

Revenue

Adjusted EBIT1

Free cashflow

*

Key figures for 2012 were adjusted due to the retrospective application of IAS 19R (2011); Order intake, Revenue and Adjusted EBIT were aligned due to the sale of the Hydraulics Business

1

Adjusted for KION acquisition items and one-off items

 

 

 

 

 

2013

4,489.1

4,494.6

416.5

202.6

2012*

4,590.3

4,559.8

408.3

518.1

2012

4,700.1

4,726.7

438.2

518.1

2011

4,681.9

4,368.4

364.6

234.2

KPIs related to business volume

Order intake and revenue are broken down by region, segment and product category in the KION Group’s management reporting so that growth drivers and pertinent trends can be identified and analysed at an early stage. Order intake is a leading indicator for revenue. The length of time between receipt and invoicing of an order varies between business units and product groups.

Earnings-related KPI

Adjusted EBIT: The key figure used for the operational management and analysis of financial performance is adjusted earnings before interest and tax (EBIT). It is calculated in the same way as EBIT, except that it does not take account of the KION Group purchase price allocation or any non-recurring items.

Liquidity-related KPI

Free cash flow: Free cash flow is the main KPI for managing leverage and liquidity. It is determined by the KION Group’s operating activities and investing activities. Free cash flow does not include interest arising from financing activities. The performance measurement of free cash flow is supported by the carefully targeted management of working capital and by detailed planning of capital expenditure.

Besides the aforementioned core KPIs, the KION Group uses additional financial and non-financial KPIs. Net debt is now becoming less important than the other financial KPIs because the Group’s financial position improved substantially in the year under review. The non-financial KPIs essentially relate to customers, employees, sustainability and technology. Some of them are used operationally as leading indicators for the financial KPIs.

The KPIs used to manage the brand segments are order intake, revenue and adjusted EBIT. Earnings before tax (EBT) and return on equity (ROE) are the KPIs used to manage the Financial Services segment.