Letter to shareholders


»We shape the future of intralogistics.«
Gordon Riske
Chief Executive Officer
Dear shareholders, customers, partners, employees and friends of the KION Group,
Last year marked the dawn of a new era for our Company, and also for others. By acquiring Dematic, a specialist for automation and supply chain optimisation, the KION Group has become a different, more diverse and more powerful group. We can now offer our customers around the world everything they need for their intralogistics – from basic hand pallet trucks to the most complex of automated material handling solutions – underpinned by what is probably the most extensive sales and service network in the industry worldwide. By offering a comprehensive portfolio from a single source, we are better placed than anyone else to help customers create value. That is why, now that Dematic has joined the KION family, we have also begun a new chapter for our industry.
Our world is evolving rapidly and our industry is being shaken up. How we live, how we work – digitalisation is changing everything. When you order goods online, they usually arrive the next day or, more and more frequently, the same day. Cities are growing and people are starting to prefer using their local shops again instead of going to a mall. Warehouses are therefore being relocated to distribution centres. Thriving companies are those that have automation solutions with which they can meet the constantly changing needs of today’s and, above all, tomorrow’s consumers.
All set for innovation and Intralogistics 4.0
Of course it is not only thanks to Dematic that the KION Group is fully equipped to fulfil – and benefit from – our customers’ expectations regarding innovation and solutions in the world of Intralogistics 4.0. Sophisticated technology has made our smart trucks even safer, and we have refined our fleet data management systems. We are breaking down the barriers of automation with STILL’s award-winning autonomous order picker, iGo neo: this intelligent truck follows the operator at every turn like a willing colleague. What’s more, Linde has expanded its range of Linde-MATIC trucks equipped with robotics, while Egemin has unveiled new, compact versions of its automatic guided vehicle systems. We have also made huge advances in cutting-edge drive technology: Linde and STILL went to market with the first counterbalance trucks powered by a lithium-ion battery in 2016.
Our traditional business of forklift trucks and warehouse technology on the one hand and the automation solutions from Dematic on the other are the perfect fit, and not only in technological terms. The two companies complement each other because they both have a strong market position and regional presence, which will open up cross-selling potential in the medium term. Dematic will make use of the KION Group’s outstanding reputation and the leading position of its brands in key markets such as Europe, China and Brazil, while KION benefits from Dematic’s strong standing in the US and European automation markets. Moreover, the combination of the KION Group’s comprehensive sales and service network and Dematic’s large installed base will also result in opportunities for further growth in the software and service businesses and in the retrofitting and upgrading of systems. The benefits that each company has for the other will also generate cost synergies.
KION Group is evolving in line with customer needs
New structures paying off
Profitable growth again in 2016
As you can see, there is a good reason why we called this annual report ‘A new era’. Our Company is now not only much bigger but also much closer to our customers because their local service engineer or sales office is now nearer. Our portfolio of products and service is now far more extensive and it has never been easier for customers to obtain the solution they need from a single source. But one thing has stayed the same: our mission statement that the KION Group equates to more than the sum of its brands.
With best wishes,
Gordon Riske
Chief Executive Officer KION GROUP AG