Management system

Core key performance indicators

The KION Group’s strategy, which centres on value and growth, is reflected in how the Company is managed. It uses five core 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-based remuneration paid to managers. In principle, 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 variances compared with target figures. > TABLE 012

Key performance indicators

 

012

in € million

Order intake1

Revenue

Adjusted EBIT2

Free cash flow

ROCE

1

Prior-year figures restated to reflect the change in the order intake calculation introduced in 2015

2

Adjusted for KION acquisition items and non-recurring items

2015

5,215.6

5,097.9

482.9

332.7

11.9%

2014

4,771.2

4,677.9

442.9

305.9

11.4%

2013

4,489.1

4,494.6

416.5

195.6

–

KPIs related to business volume

Order intake and revenue

Order intake and revenue are broken down by segment, region 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

Liquidity-related KPI

Profitability-related KPI

Other key performance indicators

Besides the aforementioned core KPIs, the KION Group uses a variety of additional financial KPIs. The main ones are net debt, which is used to manage the capital structure, and the EBIT margin, which together with ROCE is relevant as a component of remuneration and as a target in the Strategy 2020. There are also non-financial KPIs, which primarily 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.