Management system

Core key performance indicators

The KION Group’s strategy, which centres on value and growth, is reflected in how the Company is managed. It uses five core key performance indicators (KPIs), which remained unchanged in the reporting year, to continuously monitor market success, profitability, financial strength and liquidity. The performance targets of the Group and the segments are based on selected financial KPIs, as is the performance-based remuneration paid to managers. The KPIs used to manage the segments are order intake, revenue and adjusted EBIT. As a rule, the KPIs are measured and made available to the Executive Board in a comprehensive report each month. This enables the management team to take prompt corrective action in the event of variances compared with target figures. > TABLE 004

Key performance indicators

004

in € million

2018

2017*

*

Key figures for 2017 were restated due to the initial application of IFRS 15 and IFRS 16

**

Adjusted for PPA items and non-recurring items

Order intake

8,656.7

7,979.1

Revenue

7,995.7

7,598.1

Adjusted EBIT**

789.9

777.3

Free cash flow

519.9

474.3

ROCE

9.3%

9.3%

Other key performance indicators

Besides the aforementioned core KPIs, the KION Group uses a wealth of additional financial KPIs. The main one is the adjusted EBIT margin, which is besides ROCE a relevant component of remuneration and is also a target in the KION 2027 strategy. There are also non-financial KPIs, which primarily relate to customers, employees, sustainability and technology. Some of them are used operationally as leading indicators for the financial KPIs.