Overall assessment of the economic situation

The KION Group is a global leader in industrial trucks, warehouse technology, related services and supply chain solutions. It now has a unique portfolio of products, technologies and services in the global market and its positioning as a full-service provider of material handling solutions will enable it to benefit extensively from the growth in Intralogistics 4.0.

In 2016, the KION Group generated revenue of around €5.6 billion, thereby exceeding the equivalent figure in 2015 of €5.1 billion by 9.6 per cent despite significant negative currency effects. When adjusted for Dematic, which was reported for the first time in November/December, revenue rose by 4.5 per cent. The groupwide order book, which had a value of €2.2 billion at the end of 2016 (31 December 2015: €864.0 million), will serve as a sound basis for future growth and also includes the order book acquired with Dematic.

Total revenue in the Industrial Trucks & Services segment went up by 3.1 per cent to €5,202.6 million. The order intake was also 4.6 per cent higher year on year, one of the reasons being the excellent sustained level of orders in Europe. The segment was able to generate significant growth from new trucks, service business and also financial services, more than offsetting the negative effects from currency movements. Measured in terms of units sold, the brands in the segment kept pace overall with the strong growth in the global market. Significant drivers behind the growth in the industrial trucks business included truck deliveries and fleet management solutions in connection with e-commerce.

The Supply Chain Solutions segment generated total revenue of €366.0 million, which equated to an increase of €333.0 million compared with 2015. This rise in revenue was largely attributable to Dematic, the lead company in the segment, and to Retrotech, which was also acquired in the year under review. The revenue from Dematic was only included for two months, and that from Retrotech for ten months (2015: Egemin Automation for five months). The revenue was primarily accounted for by call-off orders under ongoing engineering projects, some of which cover a number of years. The revenue was recognised on a pro rata basis using the percentage of completion method. The order intake of €431.2 million related to project business for the most part.

EBIT, adjusted for non-recurring items, came to €537.3 million, a year-on-year increase of 11.3 per cent. After taking into account purchase price allocation (PPA) effects, among other things in connection with the KION and Dematic acquisitions, and further non-recurring items, EBIT amounted to €434.8 million.

In total, the KION Group generated net income for the year of €246.1 million (2015: €221.1 million). The earnings per share attributable to the shareholders of the KION Group amounted to €2.38 compared with €2.20 in 2015. KION GROUP AG will propose a dividend of €0.80 per share to the Annual General Meeting (2015: €0.77 per share).