Fundamentals of the KION Group
The accounting policies used in this interim report are essentially the same as those used for the year ended December 31, 2020. The reporting currency is the euro.
Management and control
Dr. Henry Puhl has been a member of the Executive Board and the new Chief Technology Officer (CTO) of KION GROUP AG since July 1, 2021. He succeeded Dr. Eike Böhm, who retired on June 30, 2021. Hasan Dandashly, who has global responsibility for the Supply Chain Solutions (SCS) segment, and Andreas Krinninger, who is in charge of the EMEA business of the Industrial Trucks & Services (ITS) segment, joined the Executive Board of KION GROUP AG on January 1, 2021.
The Remuneration Committee established by the KION GROUP AG Supervisory Board with effect from March 1, 2021 focuses mainly on issues relating to the Executive Board’s remuneration but also deals with the annual remuneration report and the preparations for the report’s approval by the Annual General Meeting. It also prepares all Supervisory Board resolutions required in this regard.
Strategy of the KION Group
In the first half of 2021, the KION Group continued to push ahead with implementing the KION 2027 strategy, with its strategic fields of action of innovation and performance, energy, digitalization, and automation. The aim of the long-term strategy is for the KION Group, as a provider of solutions, to grow at a faster rate than the global material handling market and to continue improving its adjusted EBIT margin so that it reaches double digits in 2023 and continues to increase in the long term. Profitability is to be ensured throughout the various market cycles by a resilient business model. A further target is the optimization of efficient capital use as measured by return on capital employed (ROCE).
Strengthening the KION Group’s long-term position in the growth regions of the global material handling market, especially China, remains a key area of focus. In 2020, construction began on an additional factory in the Jinan region for the production of trucks, primarily for the fast-growing value segment. Building work progressed as planned in the reporting period, and the factory is scheduled to go into operation in 2022. In Europe, the new industrial truck plant in Kołbaskowo, near Szczecin in Poland, came on stream in the second quarter of 2021.
Another focal point was the implementation of various measures in the strategic fields of action.
In the energy field of action, the emphasis remained on the development and manufacture of energy-efficient drive technologies for industrial trucks. The associated product range was further expanded. KION Battery Systems GmbH (KBS), a joint venture with BMZ Holding GmbH, began full-scale production of lithium-ion batteries in the autumn of last year.
In the digitalization field of action, the KION Group strengthened its technological position by introducing new software solutions and applications, including warehouse management software for small and medium-sized enterprises.
In the automation field of action, the KION Group increased its installed base by establishing and expanding automated distribution centers that are primarily located in North America and Europe. One of the additions to the technology portfolio was an online tool for configuring automation solutions (Dematic Conveyor ConfiKIT).