Strategy of the KION Group

Objectives of the KION 2027 strategy

The KION Group forged ahead with the implementation of its KION 2027 strategy during the reporting year. The KION 2027 strategy provides the framework for profitable growth in the Group and specifies groupwide targets. The strategy is aligned with the KION Group’s vision: “We are the best company in the world at understanding our customers’ material handling needs and providing the right solutions.”

The KION 2027 strategy provides the framework in the Group and sets groupwide targets:

  • Growth: The KION Group aims to grow at a faster rate than the global material handling market by evolving into a solutions provider in both segments. The medium-term target is consolidated revenue of over €12 billion in 2023, to which the Industrial Trucks & Services is to contribute more than €7.5 billion and the Supply Chain Solutions segment more than €4.5 billion.
  • Profitability: The KION Group wants to retain its position as one of the most profitable suppliers in the industry and improve its adjusted EBIT margin to between 10 percent and 12 percent in 2023. Also in 2023, the Industrial Trucks & Services segment is aiming for an adjusted EBIT margin of over 10 percent while the Supply Chain Solutions is targeting a range of 12 percent to 14 percent.
  • Efficient use of capital: The KION Group continually strives to optimize the return on capital employed (ROCE). Besides increasing earnings, the focus here is on asset management and efficient use of capital.
  • Resilience: Profitability throughout the various market cycles is to be guaranteed by a robust business model. This will involve greater diversification in terms of regions and customer sectors alongside efforts to expand the service business and further optimize the production network.

Strategic fields of action and measures in  2021

Six fields of action have been defined for the KION 2027 strategy – energy, digitalization, automation, innovation, performance and, since 2021, sustainability – for which a wide range of strategic measures were implemented in 2021. Once again, there was also a focus on capital expenditure aimed at enduringly strengthening the position of the KION Group in the market.

Energy

The KION Group continually develops its products and solutions so that its customers are able to use energy as efficiently and sustainably as possible. Electric-powered forklift trucks and warehouse trucks already made up around 87 percent of order intake (in terms of units) in the KION Group’s Industrial Trucks & Services segment in 2021. The strategy is focused on the development and commercialization of new energy sources, such as lithium-ion batteries and fuel cells, for industrial trucks and on related services, such as the provision of advice on energy matters.

Crucial to this strategic approach is ensuring the long-term availability of lithium-ion batteries while reducing dependence on suppliers. For the joint venture KION Battery Systems GmbH, 2021 was the first full year of manufacturing lithium-ion batteries for the KION Group’s industrial trucks. It also extended the range of production series to supply batteries for a greater number of trucks and power classes. In parallel, further improvements were made to the performance and robustness of electric forklift trucks, including those in higher load ranges. Preparations are under way for the production of lithium-ion batteries for warehouse trucks (see ‘Research and development’). In October 2021, the KION Group acquired a minority stake in ifesca GmbH, based in Ilmenau, Germany, which means it will be able to offer customers a fully integrated AI-based solution for energy management in the future.