Supply Chain Solutions segment

Business performance and order intake

Following a significant increase in the previous year, the Supply Chain Solutions segment saw a further 14.3 per cent rise in its order intake to €2,771.0 million in 2019 (2018: €2,425.2 million). The segment secured significant orders from new customers in EMEA and Asia over the course of 2019, and the strong finish to the year resulted in an even bigger order book. Currency effects, mainly from the resurgent US dollar, boosted the value of order intake by €87.7 million.

Revenue

The total revenue of the Supply Chain Solutions segment increased by a substantial 15.7 per cent year on year to reach €2,378.8 million (2018: €2,055.2 million), thanks in large part to the strong order book at the end of 2018. The rise in segment revenue was driven both by the project business (business solutions) and by the service business, which reported revenue growth of 17.6 per cent and 10.7 per cent respectively. The share of segment revenue generated by the service business stood at 25.1 per cent (2018: 26.2 per cent). As a result of the growing volume of business in the European and Asian markets, the proportion of the segment’s external revenue generated by the North American business declined to 64.1 per cent (2018: 65.7 per cent).

Earnings

The segment’s adjusted EBIT jumped by 26.6 per cent to €228.1 million (2018: €180.2 million), mainly due to the increase in revenue. More efficient project execution also helped to improve profitability. In 2018, delays in the awarding of projects by customers had led to temporary underutilisation of project-related personnel capacity. Overall, the adjusted EBIT margin improved substantially from 8.8 per cent to 9.6 per cent. After taking into account non-recurring items and greatly reduced purchase price allocation effects, the segment’s EBIT more than doubled to reach €129.6 million (2018: €64.4 million).

Adjusted EBITDA increased significantly to €288.9 million (2018: €231.5 million), giving an adjusted EBITDA margin of 12.1 per cent (2018: 11.3 per cent). > TABLE 015