Segment report

The Executive Board divides the KION Group into financial services activities, the activities grouped in the ‘Other’ segment and the Linde Material Handling (LMH) and STILL brands for management purposes. Segment reporting follows the same breakdown, taking into account the relevant organisational structures and corporate strategy of the KION Group.

The key performance indicators (KPIs) used to manage the brand segments are order intake, revenue and adjusted EBIT. Segment reporting therefore includes a reconciliation of externally reported consolidated earnings before interest and tax (EBIT) – including KION acquisition items and non-recurring items – to the adjusted EBIT for the segments (‘adjusted EBIT’).

Earnings before tax (EBT) and return on equity (ROE) are the KPIs used to manage the Financial Services segment. ROE is calculated on the basis of average equity employed excluding net income (loss) for the current period. As at 31 March 2014, ROE – earnings before tax as a percentage of average equity – remained unchanged compared with 31 December 2013 at 13.0 per cent.

The following tables show information on the KION Group’s operating segments for the first quarters of 2014 and 2013. >> TABLES 31–32

Segment report Q1 2014

 

 

 

 

>>TABLE 31

in € million

LMH

STILL

Financial Services

Other

Consolidation/ Reconciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

3

Number of employees in full-time equivalents as at 31 March; Allocation according to the contractual relationship

 

 

 

 

 

 

 

Revenue from external customers

651.3

351.1

77.3

9.2

1,088.9

Intersegment revenue

69.6

81.2

61.7

47.5

–260.0

Total revenue

720.9

432.3

139.0

56.7

–260.0

1,088.9

Earnings before taxes

64.0

14.7

1.3

–27.9

–5.4

46.7

Financial income

2.7

–1.4

14.5

3.4

–7.7

11.5

Financial expenses

–5.6

–7.0

–13.8

–23.6

8.2

–41.8

= Net financial expenses

–2.9

–8.4

0.8

–20.3

0.5

–30.3

EBIT

67.0

23.0

0.5

–7.6

–5.9

77.0

+ Non-recurring items

3.1

0.5

0.0

0.9

4.5

+ KION acquisition items

5.3

0.6

0.0

0.0

5.9

Adjusted EBIT

75.3

24.2

0.5

–6.7

–5.9

87.4

Segment assets

4,748.2

2,126.0

1,257.8

727.3

–2,793.8

6,065.5

Segment liabilities

1,567.5

1,232.6

1,216.6

3,172.2

–2,725.5

4,463.4

Carrying amount of at-equity investments

119.7

5.1

15.8

0.0

140.6

Loss from at-equity investments

–1.6

0.0

0.0

0.0

–1.6

Capital expenditures1

14.3

9.3

0.0

3.5

27.2

Depreciation2

21.5

9.5

0.0

4.2

35.3

Order intake

796.0

471.7

137.9

57.3

–266.8

1,196.1

Number of employees3

13,838

7,689

60

680

22,267

Segment report Q1 2013

 

 

 

 

>>TABLE 32

in € million

LMH

STILL

Financial Services

Other

Consolidation/ Reconciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

3

Number of employees in full-time equivalents as at 31 March; Allocation according to the contractual relationship

 

 

 

 

 

 

 

Revenue from external customers

646.7

351.9

74.4

12.2

1,085.2

Intersegment revenue

64.6

57.9

39.9

50.9

–213.2

Total revenue

711.3

409.8

114.2

63.1

–213.2

1,085.2

Earnings before taxes

64.2

11.9

1.2

–37.9

–0.6

38.8

Financial income

2.9

0.5

12.2

18.0

–9.8

23.8

Financial expenses

–6.1

–8.2

–11.2

–55.0

9.1

–71.4

= Net financial expenses

–3.2

–7.7

1.0

–37.0

–0.7

–47.6

EBIT

67.4

19.6

0.2

–0.9

0.2

86.4

+ Non-recurring items

2.4

0.9

0.0

–4.7

–1.3

+ KION acquisition items

6.1

1.4

0.0

0.2

7.6

Adjusted EBIT

75.9

21.9

0.2

–5.3

0.2

92.8

Segment assets

4,590.9

2,069.6

1,038.4

778.9

–2,208.6

6,269.1

Segment liabilities

1,459.4

1,172.0

1,000.8

4,121.0

–2,208.8

5,546.0

Carrying amount of at-equity investments

134.2

6.1

13.2

0.0

153.5

Loss from at-equity investments

–1.3

0.0

0.0

0.0

–1.3

Capital expenditures1

14.5

7.0

0.0

3.6

25.2

Depreciation2

21.1

9.3

0.0

5.1

35.6

Order intake

728.6

446.8

114.2

63.1

–207.4

1,145.3

Number of employees3

13,222

7,426

58

715

21,421

The non-recurring items mainly comprise consultancy costs, as well as expenses in connection with severance payments, social plan costs and costs relating to the relocation of production and closure of production facilities. In addition, the purchase-price-related depreciation, amortisation and impairment (PPA) are eliminated from the non-operating profit (loss) of Linde Hydraulics reported in the profit (loss) from equity-accounted investments. Non-recurring items resulted in an overall expense of €4.5 million in the first quarter of 2014 (Q1 2013: income of €1.3 million). In the first quarter of 2013, non-recurring items had included income and expenses amounting to net income of €6.3 million in connection with the sale of the controlling interest in Linde Hydraulics GmbH & Co. KG, Aschaffenburg, in December 2012.

The KION acquisition items relate to the acquisition of the KION Group, which was formed at the end of 2006 when it was spun off from Linde AG, Munich. These items comprise net write-downs on the hidden reserves identified as part of the purchase price allocation.

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