Opportunity and risk report

As a result of the ongoing and significant macroeconomic uncertainty, the KION Group’s risk situation with regard to procurement risk has changed compared with the description in the 2021 annual report. This change concerns both operating segments in equal measure. As things stand at present, there are no indications of any risks that could jeopardize the Company’s continuation as a going concern. The KION Group’s overall opportunity situation has not changed significantly compared with the description in the 2021 annual report.

Risk matrix

Risk matrix (matrix)

Procurement risk

The continuing sharp rises in the cost of materials, energy, and logistics, from an already high level, is increasing procurement risk for the KION Group. Disrupted supply chains and the resulting reduction in the availability of parts and materials is being further exacerbated by the ongoing war in Ukraine. The coronavirus restrictions that are still in place, particularly in Asia, could also lead to further risks on the procurement side.

It is currently impossible to predict how these situations will develop over the further course of 2022. Early pre-emptive action was nevertheless taken to address problems with suppliers and in respect of sales to customers, particularly in the Industrial Trucks & Services segment. For example, the supplier base was diversified to an even greater extent in order to mitigate disruption in the supply chains. In addition, dedicated project teams are continually monitoring supply chains, the availability of materials, and suppliers’ ability to fulfill orders. And the continued sharp rise in material prices was passed on to customers in the form of appropriate increases in list prices, reflecting the prevailing market situation in each case.

Overall, the current procurement situation has raised the procurement risk level from medium to high.