Long-term leasing business

The sales activities of the KION Group are supported by financial services in connection with direct long-term leasing business. In this business, trucks leased directly to the end customer are refinanced by the KION Group. The portfolio of the long-term leasing business, which supports the KION Group’s sales activities, continued to be focused predominantly in western Europe as at 31 March 2017. The long-term leasing business had a positive impact on the KION Group’s financial performance (> TABLE 13) in the first quarter of 2017 and also influenced its financial position (> TABLE 14). This information is taken from the internal reporting system and is determined using the assumption of a minimum rate of return on the capital employed. Net financial debt relating to the long-term leasing business increased to €115.6 million (31 December 2016: €106.3 million), reflecting the expansion of these activities. > TABLE 15

Profitability of long-term leasing business

13

in € million

Q1 2017

Q1 2016

Change

Revenues

104.9

97.7

7.4%

Adjusted EBITDA

28.7

23.4

22.3%

Adjusted EBIT

1.4

1.6

–13.7%

Earnings before taxes (EBT)

1.2

1.0

17.2%

Financial position of long-term leasing business

14

in € million

31/03/2017

31/12/2016

Change

Liabilities to banks

115.6

106.3

8.7%

Liabilities from financial services

16.0

8.3

92.8%

Lease liabilities

1,014.1

1,007.2

0.7%

Calculatory equity

40.2

39.4

2.1%

Total

1,185.9

1,161.2

2.1%

 

 

 

 

Leased assets

443.9

429.7

3.3%

Lease receivables

742.0

731.5

1.4%

Total

1,185.9

1,161.2

2.1%

Refinancing of long-term leasing business

15

 

31/03/2017

31/12/2016

in € million

KION Group

thereof
non-current leasing business

KION Group

thereof
non-current leasing business

Liabilities to banks

2,189.1

115.6

3,188.6

106.3

Promissory note – gross

1,010.0

Other financial liabilities to non-banks

7.3

7.2

./. Capitalised borrowing costs

–12.5

–12.9

Financial liabilities

3,193.9

115.6

3,183.0

106.3

 

 

 

 

 

./. Cash and cash equivalents

–336.8

–279.6

Net financial liabilities

2,857.1

115.6

2,903.4

106.3

 

 

 

 

 

Lease liabilities

1,014.1

1,014.1

1,007.2

1,007.2

Liabilities from financial services

16.0

16.0

8.3

8.3

Interest-bearing net liabilities

3,887.3

1,145.7

3,918.9

1,121.8

 

 

 

 

 

Liabilities from short-term rental financing

450.9

456.7

Liabilities from procurement leases

21.5

21.0

Liabilities from finance leases

472.4

477.7

Net operating debt

4,359.7

1,145.7

4,396.6

1,121.8