The segments and their products and services

The KION Group’s market activities are divided into five operating units: LMH EMEA, STILL EMEA, KION APAC, KION Americas and Dematic. While the operating units have full operational and commercial responsibility within their markets, KION GROUP AG is the strategic management holding company and is responsible for the groupwide strategy and groupwide business standards.

During the year under review, the segment structure was amended in line with the changed internal management structures following the completion of the Dematic acquisition. Dematic has only been included for two months. For internal management purposes, the KION Group has divided its operating business into two segments that correspond to segments, as required by international financial reporting standards (IFRS 8). The KION Group overall has three segments, which are also presented retrospectively for the 2015 financial year. The industrial truck business, including the supporting financial services, is now shown in the Industrial Trucks & Services segment, while activities focusing on automated supply chain solutions make up the Supply Chain Solutions segment. Egemin Automation (including Retrotech, which was acquired in 2016) now belongs to the Supply Chain Solutions segment, which is headed up by Dematic. The Corporate Services segment comprises the other activities and holding functions of the KION Group. > TABLE 011

Industrial Trucks & Services segment

The Industrial Trucks & Services segment encompasses the activities of the brands Linde, STILL, Fenwick, OM STILL, Baoli and Voltas plus the financial services business. The industrial truck business has been organised into four operating units to ensure efficient and close cooperation across all regions and brands: LMH EMEA and STILL EMEA, which each concentrate on Europe, the Middle East and Africa, plus KION APAC and KION Americas, which hold cross-brand responsibility for the Asia-Pacific region and the Americas respectively.

Linde is an international premium brand and a technology leader. Among its other selling points, it meets customers’ highest requirements regarding technology, efficiency, functionality and design. The product portfolio ranges from warehouse trucks to heavy trucks and caters to all of the major application areas. In France, Linde products are sold under the Fenwick brand.

STILL is predominantly an international premium provider of trucks with electric and diesel-electric drives. It mainly focuses on the European and Latin American markets, with the national brand OM STILL serving the Italian market. The STILL portfolio consists of forklift trucks and warehouse trucks plus associated services, including automation and fleet management.

Baoli is the international brand for the lower end of the volume segment and the economy segment. Building on its base in China and other growth markets in Asia, it is expanding its sales structures in Europe as well as in Central, South and North America.

Voltas is the national brand company for the Indian market, through which the KION India Pvt. Ltd. subsidiary manufactures and sells electric and IC forklift trucks and warehouse trucks.

KION Financial Services (FS) is an internal funding partner for the industrial trucks business, providing finance solutions to support sales. Its activities comprise the financing of long-term leasing business for external customers, the internal financing of the short-term rental business and the related risk management. In the large sales markets with a high volume of financing and leasing, legally independent FS companies handle this business.

Supply Chain Solutions segment

The Supply Chain Solutions segment brings together the activities of the Dematic, Egemin Automation and Retrotech brands. The Dematic operating unit is responsible for the shared, cross-brand market presence of the portfolio of automated supply chain solutions.

Dematic is a leading global supplier of advanced integrated automation technology as well as software and services for optimising supply chains and meeting customers’ supply chain solution requirements. Its portfolio of products and systems comprises automated guided vehicle systems, palletisers, storage and picking equipment including automated storage and retrieval systems, sorters and conveyors, a leading integrated software platform and automation technologies. The offerings from Egemin, which focuses on automated guided vehicle (AGV) systems, and Retrotech, which specialises in modernising storage and retrieval systems and in retrofitting systems, enhance and complement Dematic’s products and services.

Corporate Services segment

The Corporate Services segment comprises holding companies and other service companies that provide services such as IT and logistics across all segments.