Overall assessment of the economic situation

The KION Group was able to raise profitability in the first half of 2023. Consolidated revenue rose to €5,617.4 million, an increase of 1.5 percent compared with the prior-year figure (€5,536.7 million). Adjusted EBIT improved by 11.7 percent to €348.3 million (H1 2022: €311.7 million), which put the adjusted EBIT margin at 6.2 percent (H1 2022: 5.6 percent).

The substantial increase in revenue in the Industrial Trucks & Services segment in the first half of 2023 of around 20 percent to €4,134.7 million was mainly attributable to the accelerated processing of the large volume of orders on hand. Along with further improvements in conditions along the supply chain and the associated rise in production output, the positive effects from price increases implemented in 2022 also became more pronounced. Revenue in the Supply Chain Solutions segment came to €1,497.0 million and thus fell short of the prior-year figure by 28.6 percent. This was due to a decline in orders on hand in the project business in recent quarters.

Profitability in the Industrial Trucks & Services segment improved significantly thanks to high levels of revenue and the fact that the dynamic price increases implemented in 2022 began to take effect while material costs remained stable. Consequently, the performance of the ITS segment more than offset the deterioration in earnings in the Supply Chain Solutions segment.

Net income for the first half of 2023 came to €146.3 million (H1 2022: 159.8 million). This decline was due to an increase in net financial expenses and income taxes. Basic earnings per share thus amounted to €1.09 (H1 2022: €1.21). Free cash flow was well into positive territory in the first six months of the reporting year. Against the backdrop of strong EBIT and a virtually unchanged level of working capital compared with the end of 2022, free cash flow came to €228.8 million (H1 2022: negative cash flow of €591.5 million). The improved liquidity situation also allowed financial liabilities to be reduced by a total of €178.9 million compared with the end of 2022. As a result, net debt decreased by €101.0 million to €1,569.5 million and thus stood at 1.2 times adjusted EBITDA on an annualized basis.

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