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

The LMH and STILL segments showed different results in their respective markets. The LMH segment which includes the brands Linde, Fenwick and Baoli reported a decline in order intake of 7.5% to 23,600 units from a high level of 25,500 units in Q1/2012 while the STILL segment increased its global order intake by 6.1% to 13,900 units (Q1/2012: 13,100 units). Total order intake on a value base, which includes all lines of business, decreased for LMH by 10.4% to €727.9 million (Q1/2012: €812.4 million). The order intake for STILL increased by 4.9% from €429.5 million in the previous year period to €450.4 million in Q1/2013.

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’s revenue decreased by 7.9%, from €772.7 million in Q1/2012 to €711.3 million in Q1/2013, mainly as a result of the sale of the LHY Business. Revenue from external customers decreased by 9.4% to €646.7 million for the three-month period ended March 31, 2013, compared to €713.5 million for the three-month period ended March 31, 2012.

LMH Segment: EBIT, Adjusted EBIT and Adjusted EBITDA

In Q1/2013, EBIT decreased by €11.3 million to €67.4 million. The major factor for this decrease was the sale of the LHY Business at the end of the financial year ended December 31, 2012, which enjoyed stronger margins than the rest of our business. In Q1/2013, EBIT was impacted by Non-recurring Items of negative €2.4 million as a result of additional income related to the sale of the LHY Business of €8.1 million, which were partly off-set by restructuring and consulting fees. Additionally a loss recognized from our 30.0% investment in Linde Hydraulics KG due to the depreciation and amortization of Linde Hydraulic KG’s purchase price allocation amounted to €1.4 million for Q1/2013. In Q1/2012 Non-recurring Items amounted to positive €5.7 million, which resulted mainly from the remeasurement of the at-equity investment in connection with acquisition of the remaining 51 per cent of outstanding shares in our UK dealer Linde Creighton Ltd. and sale of property due to the closure of the plant in Basingstoke, UK. Adjusted EBIT decreased by €4.4 million to €75.9 million in Q1/2013, compared to €80.3 million in Q1/2012. Adjusted EBIT Margin grew from 10.4% in Q1/2012 to 10.7% in Q1/2013. Adding back depreciation, amortization and impairment costs, the LMH segment achieved an Adjusted EBITDA of €109.8 million and an Adjusted EBITDA margin of 15.4%, compared to an Adjusted EBITDA of €115.1 million and an Adjusted EBITDA margin of 14.9% in Q1/2012.

STILL Segment: Revenue

Order intake increased by 4.9% to €450.4 million in Q1/2013. Revenue was stable at €409.8 million in Q1/2013 compared to €410.6 million in Q1/2012. Revenue from external customers increased slightly by 0.1% to €351.9 million for the three-month period ended March 31, 2013, compared to €351.5 million for the three-month period ended March 31, 2012.

STILL Segment: EBIT, Adjusted EBIT and Adjusted EBITDA

STILL segment’s EBIT increased by €0.5 million to €19.6 million in Q1/2013 due to improved general market conditions. In Q1/2013, EBIT was impacted by Non-recurring Items of negative €0.9 million. Non-recurring Items for Q1/2012 totalling negative €4.4 million were mainly related 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. Adjusted EBIT decreased to €21.9 million, compared to €25.0 million in Q1/2012. Adding back amortization, depreciation and impairment charges, the STILL segment achieved in the reporting period an Adjusted EBITDA of €46.4 million and an Adjusted EBITDA margin of 11.3%, compared to an Adjusted EBITDA of €47.5 million and an Adjusted EBITDA margin of 11.6% in Q1/2012.

Segment Financial Services

The Financial Services segment includes the results of our financial services activities across our brands and encompasses financing for long-term leasing and short-term fleets as part of sales financing.

Segment Financial Services: Revenue

Revenue from our Financial Services segment increased by 15.7% to €114.2 million for the three-month period ended March 31, 2013, compared to €98.7 million for the three-month period ended March 31, 2012 (including intragroup revenue), primarily due to an increase in leasing business. The Financial Services segment increased its external revenue by 8.3% to €74.4 million for the three-month period ended March 31, 2013, compared to €68.7 million for the three-month period ended March 31, 2012.

Segment Financial Services: EBT and return on equity

EBT for the Financial Services segment remained stable at €1.2 million for each of the three-month periods ended March 31, 2012 and 2013, respectively. Furthermore, our equity increased by 2.0% in the three-month period ended March 31, 2013 to €36.1 million, from €35.3 million for the three-month period ended March 31, 2012. As a result, the return on equity remained stable at 3.3% for the three-month periods ended March 31, 2012 and 2013.

Segment Other

The Other segment includes our information technology services, logistics services and head office and service functions in Germany, France, Spain and the United Kingdom. Since May 1, 2011 the Other segment also includes our Voltas brand.

Segment Other: Revenue

The Other segment increased its revenue by €4.1 million to €63.1 million for the three-month period ended March 31, 2013 from €59.0 million for the three-month period ended March 31, 2012. This increase was mainly driven by the operational business of Voltas. Revenue from external customers increased by 13.3% to €12.2 million for the three-month period ended March 31, 2013, compared to €10.8 million for the three-month period ended March 31, 2012. See also the table “Segment Report” under Financial Statements.

Segment Other: EBIT, Adjusted EBIT and Adjusted EBITDA

EBIT increased to negative €0.9 million for the three-month period ended March 31, 2013, compared to negative €8.1 million for the three-month period ended March 31, 2012, mainly due to additional income related to the sale of the LHY Business. The Non-recurring Items for the three-month period ended March 31, 2013 were positive €4.7 million, reflecting the positive effect from the additional income related to the sale of the LHY Business, which was partly off-set by consulting fees and other non-recurring measures. For the three-month period ended March 31, 2012, Non-recurring Items amounted to negative €2.8 million, mainly due to consulting fees. Adjusted EBIT amounted to negative €5.3 million for the three-month period ended March 31, 2013 compared to negative €5.1 million for the three-month period ended March 31, 2012. Adjusted EBITDA in the Other segment remained stable at negative €1.0 million for both periods under review.