Leasing Business Deep Dive Update FY 2025 February 2026 Frankfurt Disclaimer This document has been prepared by KION GROUP AG (the "Company", and together with its consolidated subsidiaries, the "KION Group") solely for informational purposes. This disclaimer shall apply in all respects to the entire presentation (including all slides of this document), the oral presen- tation of the slides by representatives of the Company (or any person on behalf of the Company), any question-and-answer session that follo ...

Financial Data and Key Metrics Changes - GATX reported fourth quarter 2025 net income of $97 million or $2.66 per diluted share, an increase from $76.5 million or $2.10 per diluted share in Q4 2024, reflecting an EPS growth of 11% over 2024 [3][4] - For the full year 2025, net income was $333.3 million or $9.12 per diluted share, compared to $284.2 million or $7.78 per diluted share in 2024, indicating a significant increase [4] - The full year results for 2025 included a net positive impact of $0.37 per diluted share from tax adjustments, while 2024 had a net negative impact of $0.11 per diluted share [4] Business Line Data and Key Metrics Changes - Rail North America maintained utilization at 99% and closed over $640 million in new investments, optimizing the portfolio and generating substantial remarketing income [7] - Rail International faced challenges but managed to raise lease rates and maintain solid utilization levels, closing a significant transaction by acquiring nearly 6,000 rail cars from DB Cargo [8] - GATX India grew its portfolio to over 12,000 wagons, with strong demand for spare aircraft engines leading to significant earnings growth in engine leasing [8] Market Data and Key Metrics Changes - The economic environment in India was strong, contributing positively to GATX's results, while Rail International in Europe faced a challenging economic backdrop [17] - The secondary market for railcars remained robust, with strong demand for GATX leased assets, which allowed the company to capitalize on portfolio optimization [7] Company Strategy and Development Direction - GATX's strategy includes integrating the Wells Fargo rail portfolio and management activities into daily operations, with a focus on maintaining a conservatively structured balance sheet [6][10] - The company plans to consolidate the newly formed joint venture into its financial statements, managing a combined fleet of 208,000 rail cars to enhance operational efficiency [11][12] - GATX aims to leverage its increased scale to optimize and rebalance its portfolio, with expectations of continued strong demand in the secondary market [15][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong EPS growth in 2026, targeting a range of $9.50-$10.10 per diluted share, marking another year of record EPS [21] - The company anticipates a similar operating environment in North America as experienced in 2025, with expectations for high utilization rates and positive lease pricing [12][13] - Management highlighted the importance of maintaining tight control over maintenance spending and managing potential disruptions in the global economy [33] Other Important Information - The board approved an 8.2% increase in the quarterly dividend, reflecting confidence in cash flow strength and business outlook [25] - A new $300 million share repurchase authorization was also approved, indicating a commitment to returning capital to shareholders [26] Q&A Session Summary Question: EPS Guidance and Gains on Sales - Management indicated that the $200 million target for gains on sales is subject to variability, with historical trends suggesting a potential range of $10 million to $15 million [30][31] Question: Variability Across Business Segments - The biggest sources of variability in financial results are projected remarketing gains and maintenance spending, which could significantly impact overall performance [33] Question: Synergies from Wells Fargo Acquisition - Initial synergies from the acquisition are expected to contribute $0.20-$0.30 to EPS, with further benefits anticipated as integration progresses [36][38] Question: Engine Leasing Market Dynamics - The global aviation market remains strong, with supply constraints positively impacting engine leasing profitability [42][43] Question: Railcar Shortages - Management confirmed that while there are no outright shortages, the market is supportive due to reduced new car production and stable pricing [48][49] Question: LPI Trends - Management noted that a 21.9% LPI is still considered positive, with expectations for continued strong performance in core segments despite some economic sensitivity [50][51] Question: Wells Fargo Fleet Integration - The integration of the Wells Fargo fleet is progressing well, with management confident in the quality and saleability of the acquired assets [59][82]

Core Insights - The Financial Accounting Standards Board (FASB) has updated on discussions from The Private Company Council (PCC) regarding potential simplifications in accounting processes for private companies [1][2] Group 1: Research Topics - The PCC has requested further research on lease accounting simplifications, subjective acceleration clauses, and methodologies for calculating the effective interest rate as part of its agenda prioritization process [2] - Updates were provided on selected research projects, detailing the research conducted and feedback received from private companies [2][3] Group 2: Technical Updates - The PCC endorsed the Board's decisions on proposed Accounting Standards Updates concerning Debt—Modifications and Extinguishments and Liabilities—Extinguishments of Liabilities, aimed at simplifying accounting for debt exchanges [3][4] - FASB staff briefed the PCC on recently issued standards and their applicability to private companies, ensuring the PCC is informed about new standards impacting accounting practices [4] Group 3: Engagement and Future Meetings - The PCC engaged with the AICPA Private Company Practices Section Technical Issues Committee to discuss lease accounting and effective interest rate determination [5] - The PCC plans to conduct liaison meetings with various industry groups in Fall 2025 and further meetings in early 2026 with groups such as the Institute of Management Accountants [6] Group 4: Public Comment Period - In September 2025, FASB opened a public comment period for a proposed Accounting Standards Update aimed at standardizing the measurement of paid-in-kind dividends on equity-classified preferred stock to improve financial reporting comparability [7]