Strategy of the KION Group*
The new ‘Playing to Win strategy’ of the KION Group will be implemented in 2025, succeeding the ‘KION 2027’ strategy, which remained in effect throughout 2024. Efforts to achieve the groupwide targets outlined in the ‘KION 2027’ strategy were executed across six action fields during the review year.
Strategic action fields and measures in 2024
Multi-branded go-to-market
By stepping up collaboration among the successfully positioned brands, the KION Group increasingly offered integrated end-to-end solutions from a single source in 2024. For instance, Dematic and STILL partnered to deliver multi-brand intralogistics solutions, combining their product portfolios into a unified system. Similarly, Dematic and Linde provided combined solutions. Additionally, new products tailored to specific customer segments were introduced, such as STILL’s Classic Line.
Growth plans for specific regions
The KION Group’s two operating segments are driving growth by ensuring that they are fully aligned with the requirements of their regional and local markets. In 2024, these growth activities centered on strengthening local production capacity, further expanding the sales and service network in the APAC and Americas regions and expanding automation solutions in the EMEA region.
This included the further expansion of the new supply chain solutions plant and integrated technology center in Jinan, China. Investments were also made in expanding the industrial truck plant at the Summerville site in the US. The aim is to increase the degree of local inhouse production while optimizing procurement costs and productivity.
In the EMEA region, the KION Automation Center Antwerp in Belgium opened in October 2024 and is the Group’s center of excellence for automation solutions, helping to drive the growth of business in this field. Furthermore, the sales and service network in the Industrial Trucks & Services segment was further strengthened as a result of dealerships being acquired.
Sustainability
The KION Group is committed to promote sustainable and responsible business practices through three strategic dimensions: people, products, and processes. In 2024, the Group pursued its sustainability ambitions across eight action fields, focusing on employee wellbeing, a sustainable product range, and efficient processes. The Executive Board remuneration system incorporates verifiable environmental, social, and corporate governance (ESG) targets covering occupational health and safety, environmental management systems, the reduction of greenhouse gas emissions, and the KION Group’s appeal as an employer.
The KION Group aims to achieve net zero greenhouse gas emissions across its value chain (Scopes 1, 2, and 3) by 2050, based on the Science Based Targets initiative (SBTi) framework. The SBTi used science-based methods to grant final validation of the KION Group’s climate targets in December 2024. The KION Group’s progress in the sustainability sphere was further underlined in 2024 by its inclusion in the Dow Jones Best-in-Class Europe index (formerly the Dow Jones Sustainability Europe index) and its ESG rating in the S&P Global Corporate Sustainability Assessment (CSA).
In both operating segments, the focus remained on developing energy-efficient solutions in 2024. The KION Group is increasingly striving to reuse and recycle materials in order to support a circular economy. Other initiatives and pilot projects aim at producing lifecycle assessments and cradle-to-cradle certification for products. Amid these sustainability efforts, the KION Group always maintains a firm focus on the safety of its products.
Further information on the sustainability strategy, including policies, targets, actions, and metrics relating to material topics, can be found in the Group sustainability report in this annual report, which describes the KION Group’s progress regarding sustainability.
Automation and software
The KION Group adopts a cross-segment approach to automation, delivering customer-specific and scalable solutions to meet diverse requirements. In 2024, the focus was on developing AGVs and AMRs that seamlessly integrate into production and warehouse environments where manual and automated trucks operate together. These advancements were showcased at LogiMAT 2024 and other trade fairs.
The KION Group is engaged in significant research and development partnerships, including a strategic alliance with NVIDIA to integrate AI solutions into its products. In September 2024, the Group established a research hub for AI-supported intralogistics solutions at TU Dortmund University, featuring an endowed professorship for safe autonomous systems.
During the reporting period, the KION Group further developed the first module of its next-generation software suite. The Control Tower software, which integrates advanced AI-supported forecasting models, is already being deployed by the first customers to improve inventory planning and operational efficiency and to gain real-time transparency across all inventory and fulfillment processes.
KION Group is also leveraging generative AI to provide dynamic, data-driven intelligence for informed decision-making and process optimization. The next-generation warehouse management software, utilizing cloud-native technology and developed in partnership with Google Cloud, is set for implementation in 2025, ensuring high reliability and dynamic scaling.
Performance and agility
The KION Group is enhancing its business model’s resilience by continuously improving efficiency and agility. A comprehensive performance program launched in early 2024 aims to reduce product costs, optimize internal processes, and unlock greater efficiency in the two operating segments. This initiative will enhance profitability and provide financial flexibility to focus on strategic priorities.
In 2024, the primary focus of research and development was on advancing energy-efficient solutions. The KION Group is progressing with the development of various electric drive systems and fuel cells, including solutions for the entire lithium-ion battery lifecycle, such as charging management, reconditioning, and recycling.
Through the Business Transformation initiative, the KION Group worked on harmonizing processes, data, and systems across the organization in 2024. This effort aims to achieve economies of scale and establish new groupwide solutions. A significant milestone was reached in the second quarter of 2024 with the successful implementation of the Business Transformation initiative in Italy.
Values, people, and leadership
The KION Group’s corporate values guide both individual and collective actions. In 2024, the HR strategy focused on recruiting and developing global talent, equipping internal teams with essential skills, and fostering a diverse, equitable, and inclusive culture. These efforts aimed to secure employee commitment and unlock their long-term potential. The positive trend in the annual employee survey results highlighted the success of these initiatives.
Playing to Win strategy
Objectives of the new strategy
The KION Group’s new ‘Playing to Win’ strategy aims to address a broader market and pursue a new vision: “KION Group is ‘The Supply Chain Solutions Company’. Our people’s passion is innovating, automating, and orchestrating solutions for our customers’ supply chains. KION brands keep the world moving.”
The strategy focuses on driving profitable growth for all stakeholders by concentrating on respective markets and expanding the portfolio with additional solutions, technologies, and services. The goals include achieving a double-digit profitability margin, significant revenue growth, increased customer and employee satisfaction, and improved occupational health and safety.
The KION Group is dedicated to helping customers implement automation solutions customized to their technological environments and specific requirements. This strategy meets the increasing need for sophisticated, cost-effective, and adaptable solutions to address global market challenges.
The strategy intends for the Industrial Trucks & Services and Supply Chain Solutions segments to complement each other more effectively, unlocking market potential based on the degree of automation and customer requirements. The KION Group differentiates between manual applications, start-up automation of individual processes, advanced automation of related processes, and integrated system solutions for full process automation.
Implementation of the new strategy
The KION Group has defined three core focus themes to implement its strategy with clarity of purpose.
Innovation and Growth
The ‘Innovation and Growth’ theme focuses on strengthening the KION Group’s existing business in its two operating segments by targeting specific products and customer segments. This includes positioning the Group in the growing market for automation solutions, supporting sustainability strategies with targeted products and solutions, and expanding the portfolio. A key priority is the implementation and deployment of innovative technologies and solutions.
The Industrial Trucks & Services segment aims to achieve organic growth across all regions by further differentiating KION brands within various customer segments and enhancing the regional production and sales network. In the service business, the focus will be on systematic lifecycle management and expanding service coverage. For the Supply Chain Solutions segment, efforts will concentrate on improving project execution and expanding customer service in key sectors. Additionally, growth potential in stand-alone automation solutions will be unlocked through a targeted cross-segment sales approach.
Sustainable Performance
The ‘Sustainable Performance’ theme focuses on improving the KION Group’s profitability. The KION Group aims to increase the efficiency of its production network through a holistic risk and capacity management. In addition, cost reductions are to be realised in direct and indirect purchasing. Consistent product cost optimisation is intended to strengthen competitiveness in the various customer segments.
Key contributions will come from the KION Group’s CTO organization, which aims to shorten new innovation time-to-market periods and reduce product costs through improved development processes, increased internal synergies, and a comprehensive ecosystem of suppliers and partners. Cross-brand collaboration in product development, such as connected trucks and AMRs, will be intensified.
The ongoing Business Transformation project, which harmonizes processes, data, and systems across the Group, will further enhance cross-segment cooperation, achieve efficiency gains, and create economies of scale.
Organizational Development
The ‘Organizational Development’ theme focuses on refining and applying groupwide leadership principles and behaviors embedded in business and HR processes to support the ‘Playing to Win’ strategy. The HR strategy will continuously expand training and continuing professional development opportunities, enabling employees to enhance their skills, knowledge, and expertise. This will be complemented by talent development programs, such as the KION Management Trainee Program, helping the Company position itself as an employer of choice and attract top talent.
The KION Group is also introducing ‘winning behaviors’ to strengthen collaboration across the Group and segments. These behaviors will complement the existing KION values of integrity, collaboration, courage, and excellence. ‘Winning behaviors’ will establish exemplary behavior and methods to be implemented across the Group, creating significant added value. These initiatives are designed to keep the KION Group’s workforce at the forefront of industry knowledge and expertise, enabling dynamic operation at all levels and ensuring success in a rapidly changing environment.
* The content of this chapter/section is disclosed voluntarily and is therefore unaudited