Kion Group (KGX) Investor update summary

New segmentation

• From 1 Jan 2027, a dedicated Financial Services (FS) segment will cover most leasing activities, alongside ITS, IAS and corporate services; IAS is unaffected.

• Leasing-related assets grew from ~€2.4bn in 2018 to ~€4.9bn in 2025, an 11% CAGR; leasing assets were 27% of total assets and leasing revenue was 22% of ITS revenue in 2025.

• FS initially includes captive entities in seven European countries, representing ~70% of leasing business; its share is expected to increase as contracts expire and additional captives may be added.

• Leasing outside captives or countries without a captive initially remains in ITS. ITS records trucks leased through FS as new-truck revenue; intra-group revenue is eliminated at group level.

IFRS 18 and income statement

• IFRS 18 applies from 1 Jan 2027, with 2026 comparatives restated; it classifies items as operating, investing or financing, and Operating Profit replaces EBIT as the relevant subtotal.

• Leasing is a specified main business activity: finance-lease interest income moves into revenue, while finance- and operating-lease interest expense moves into gross profit; profit before tax remains comparable.

• Pro forma FY 2025 revenue rises from €11,297m to €11,491m, including €194m of finance-lease interest income; the change is presentational, with revenue recognition timing unchanged.

• Pro forma FY 2025 adjusted EBIT of €789m and 7.0% margin becomes adjusted Operating Profit of €766m and 6.7% margin; the mechanical margin decline is not operational deterioration.

Cash flow, debt and KPIs

• FY 2025 operating cash flow changes from €1.132bn to €940m on an IFRS 18-restated basis; reclassified lease and rental funding cash flows reduce it by ~€191.5m, offset in financing cash flow.

• Pro forma FY 2025 free cash flow changes from €710m to €518m; industrial FCF is ~€797m, FS FCF is ~€-280m and total FS cash flow is €27.5m.

• Industrial FCF replaces group FCF as the core cash-steering and liquidity KPI from 2027; FS FCF is not total leasing FCF because some leasing remains in ITS.

• FS uses ROE, defined as LTM profit before tax divided by average equity over the last five quarterly reporting dates; pro forma FY 2025 ROE was 12.3%. ROCE uses adjusted Operating Profit and capital employed excluding leased assets and associates; it rises from 7.7% to 9.0%.

• Revised indebtedness starts from broader interest-bearing liabilities, excluding pensions; overall net debt is unchanged. Pro forma leverage changes from 1.4x to ~2.1x due to methodology, not credit deterioration.