The Executive Board divides the KION Group into financial services (FS) activities 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 indicator used to manage the brand segments is “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”). To improve comparability and control, the non-recurring items for the Linde Material Handling segment in 2012 also include the retrospective elimination of the EBIT items for the hydraulics business, which was sold at the end of 2012.
The key performance indicator used to manage the Financial Services segment is earnings before tax (EBT). Return on equity (ROE) is also an important metric.
The tables below contain information on the revenue and earnings generated by the KION Group’s operating segments in the third quarters of 2013 and 2012 and in the first nine months of 2013 and 2012.
Segment report Q3 2013
|
>>TABLE 32 | ||||||||||
|
in € million |
LMH |
STILL |
Financial |
Other |
Consolidation/ |
Total | ||||
| ||||||||||
|
|
|
|
|
|
|
| ||||
|
Revenue from external customers |
622.4 |
372.9 |
76.1 |
10.9 |
0.0 |
1,082.3 | ||||
|
Intersegment revenue |
49.9 |
48.2 |
53.7 |
45.9 |
–197.7 |
0.0 | ||||
|
Total revenue |
672.3 |
421.1 |
129.8 |
56.8 |
–197.7 |
1,082.3 | ||||
|
Earnings before taxes |
59.8 |
18.2 |
1.1 |
8.5 |
–69.1 |
18.5 | ||||
|
Financial income |
2.1 |
0.4 |
13.2 |
3.1 |
–10.1 |
8.7 | ||||
|
Financial expenses |
–4.5 |
–10.2 |
–12.0 |
–62.5 |
10.2 |
–79.1 | ||||
|
= Net financial expenses |
–2.4 |
–9.8 |
1.2 |
–59.4 |
0.1 |
–70.3 | ||||
|
EBIT |
62.2 |
28.0 |
0.0 |
67.9 |
–69.3 |
88.8 | ||||
|
+ Non-recurring items |
3.8 |
1.7 |
0.0 |
–0.7 |
0.0 |
4.7 | ||||
|
+ KION acquisition items |
5.8 |
1.5 |
0.0 |
–0.2 |
0.0 |
7.0 | ||||
|
= Adjusted EBIT |
71.7 |
31.2 |
0.0 |
66.9 |
–69.3 |
100.5 | ||||
|
Equity result |
–3.5 |
–0.1 |
0.0 |
0.0 |
0.0 |
–3.6 | ||||
|
Capital expenditures1 |
15.6 |
9.6 |
0.0 |
3.9 |
–1.7 |
27.2 | ||||
|
Depreciation2 |
22.5 |
10.4 |
0.0 |
4.6 |
–2.3 |
35.2 | ||||
|
Order intake |
773.1 |
433.8 |
129.8 |
56.8 |
–347.2 |
1,046.4 | ||||
Segment report Q3 2012
|
>>TABLE 33 | ||||||||||
|
in € million |
LMH |
STILL |
Financial |
Other |
Consolidation/ |
Total | ||||
| ||||||||||
|
|
|
|
|
|
|
| ||||
|
Revenue from external customers |
700.8 |
354.1 |
63.5 |
9.9 |
0.0 |
1,128.3 | ||||
|
Intersegment revenue |
48.2 |
48.7 |
60.9 |
54.9 |
–212.8 |
0.0 | ||||
|
Total revenue |
749.0 |
402.8 |
124.4 |
64.8 |
–212.8 |
1,128.3 | ||||
|
Earnings before taxes |
67.7 |
14.6 |
1.3 |
–46.6 |
–13.4 |
23.6 | ||||
|
Financial income |
2.4 |
0.6 |
10.5 |
–2.5 |
–14.9 |
–4.0 | ||||
|
Financial expenses |
–6.4 |
–7.6 |
–9.6 |
–42.4 |
14.0 |
–52.0 | ||||
|
= Net financial expenses |
–4.0 |
–7.0 |
0.9 |
–44.9 |
–0.9 |
–56.0 | ||||
|
EBIT |
71.7 |
21.7 |
0.4 |
–1.7 |
–12.5 |
79.6 | ||||
|
+ Non-recurring items |
–4.6 |
7.6 |
0.0 |
7.9 |
0.0 |
10.9 | ||||
|
+ KION acquisition items |
7.0 |
2.0 |
0.0 |
0.1 |
0.0 |
9.1 | ||||
|
= Adjusted EBIT |
74.1 |
31.3 |
0.4 |
6.4 |
–12.5 |
99.7 | ||||
|
Equity result |
1.5 |
1.1 |
1.2 |
0.0 |
0.0 |
3.8 | ||||
|
Capital expenditures1 |
21.9 |
13.2 |
0.0 |
2.8 |
0.0 |
37.9 | ||||
|
Depreciation2 |
25.7 |
10.5 |
0.0 |
4.7 |
0.0 |
40.9 | ||||
|
Order intake |
797.2 |
412.0 |
124.4 |
64.8 |
–321.5 |
1,076.8 | ||||
Segment report Q1—Q3 2013
|
>>TABLE 34 | ||||||||||||
|
in € million |
LMH |
STILL |
Financial |
Other |
Consolidation/ |
Total | ||||||
| ||||||||||||
|
|
|
|
|
|
|
| ||||||
|
Revenue from external customers |
1,945.8 |
1,103.2 |
233.5 |
34.2 |
0.0 |
3,316.7 | ||||||
|
Intersegment revenue |
185.6 |
160.4 |
151.3 |
144.6 |
–641.9 |
0.0 | ||||||
|
Total revenue |
2,131.5 |
1,263.6 |
384.8 |
178.8 |
–641.9 |
3,316.7 | ||||||
|
Earnings before taxes |
200.0 |
47.4 |
3.5 |
–97.2 |
–69.2 |
84.4 | ||||||
|
Financial income |
6.7 |
1.3 |
38.7 |
21.4 |
–29.7 |
38.4 | ||||||
|
Financial expenses |
–14.9 |
–26.4 |
–35.4 |
–172.9 |
28.9 |
–220.7 | ||||||
|
= Net financial expenses |
–8.2 |
–25.1 |
3.3 |
–151.5 |
–0.8 |
–182.4 | ||||||
|
EBIT |
208.2 |
72.5 |
0.2 |
54.3 |
–68.4 |
266.7 | ||||||
|
+ Non-recurring items |
4.9 |
5.2 |
0.0 |
1.8 |
0.0 |
11.9 | ||||||
|
+ KION acquisition items |
18.0 |
4.3 |
0.0 |
0.0 |
0.0 |
22.3 | ||||||
|
= Adjusted EBIT |
231.1 |
82.0 |
0.2 |
56.0 |
–68.4 |
300.9 | ||||||
|
Segment assets |
4,538.4 |
2,108.1 |
1,109.4 |
810.3 |
–2,592.4 |
5,973.9 | ||||||
|
Segment liabilities |
1,405.3 |
1,185.0 |
1,070.8 |
3,324.6 |
–2,586.4 |
4,399.3 | ||||||
|
Carrying amount of at-equity investments |
127.2 |
6.0 |
15.8 |
0.0 |
0.0 |
149.0 | ||||||
|
Equity result |
–4.5 |
0.7 |
3.5 |
0.0 |
0.0 |
–0.3 | ||||||
|
Capital expenditures1 |
44.7 |
25.0 |
0.0 |
9.6 |
0.0 |
79.2 | ||||||
|
Depreciation2 |
64.6 |
28.9 |
0.0 |
12.6 |
0.0 |
106.1 | ||||||
|
Order intake |
2,126.8 |
1,243.2 |
384.8 |
178.8 |
–637.0 |
3,296.6 | ||||||
|
Number of employees3 |
13,289 |
7,746 |
117 |
667 |
− |
21,819 | ||||||
Segment report Q1—Q3 2012
|
>>TABLE 35 | ||||||||||||
|
in € million |
LMH |
STILL |
Financial |
Other |
Consolidation/ |
Total | ||||||
| ||||||||||||
|
|
|
|
|
|
|
| ||||||
|
Revenue from external customers |
2,142.4 |
1,070.3 |
196.0 |
30.2 |
0.0 |
3,438.8 | ||||||
|
Intersegment revenue |
162.2 |
150.7 |
149.7 |
152.4 |
–615.0 |
0.0 | ||||||
|
Total revenue |
2,304.6 |
1,221.0 |
345.6 |
182.6 |
–615.0 |
3,438.8 | ||||||
|
Earnings before taxes |
225.4 |
49.3 |
3.5 |
–151.3 |
–33.3 |
93.7 | ||||||
|
Financial income |
8.2 |
2.1 |
33.1 |
8.2 |
–29.2 |
22.5 | ||||||
|
Financial expenses |
–19.7 |
–21.4 |
–30.6 |
–158.5 |
26.5 |
–203.8 | ||||||
|
= Net financial expenses |
–11.5 |
–19.3 |
2.5 |
–150.3 |
–2.7 |
–181.3 | ||||||
|
EBIT |
236.9 |
68.6 |
1.1 |
–1.0 |
–30.6 |
275.0 | ||||||
|
+ Non-recurring items |
–36.4 |
9.6 |
0.0 |
16.3 |
0.0 |
–10.4 | ||||||
|
+ KION acquisition items |
21.2 |
5.4 |
0.0 |
0.8 |
0.0 |
27.4 | ||||||
|
= Adjusted EBIT |
221.8 |
83.6 |
1.1 |
16.1 |
–30.6 |
291.9 | ||||||
|
Segment assets |
4,653.5 |
2,056.4 |
989.9 |
519.4 |
–2,137.0 |
6,082.2 | ||||||
|
Segment liabilities |
1,603.0 |
1,151.6 |
950.7 |
5,071.4 |
–2,124.0 |
6,652.8 | ||||||
|
Carrying amount of at-equity investments |
19.7 |
6.1 |
13.2 |
0.0 |
0.0 |
39.1 | ||||||
|
Equity result |
13.1 |
1.2 |
1.2 |
0.0 |
0.0 |
15.5 | ||||||
|
Capital expenditures1 |
54.2 |
33.4 |
0.0 |
9.3 |
0.0 |
96.8 | ||||||
|
Depreciation2 |
75.9 |
31.6 |
0.0 |
13.3 |
0.0 |
120.8 | ||||||
|
Order intake |
2,345.8 |
1,215.6 |
345.6 |
182.6 |
–603.1 |
3,486.6 | ||||||
|
Number of employees3 |
14,558 |
7,264 |
112 |
695 |
− |
22,629 | ||||||
The non-recurring items mainly comprised consultancy costs, as well as costs incurred in connection with severance payments, social plan costs and costs relating to the relocation of production and closure of production sites (€ 14.4 million in total). In the first nine months of 2013, these items also included further income and expenses connected with the sale of our controlling interest (70.0 per cent) in Linde Hydraulics GmbH & Co. KG, Aschaffenburg in December 2012, and components of the share of profit (loss) of the remaining 30.0 per cent of the equity-accounted shares, which amounted to net income of minus € 2.5 million. For reasons of comparability and control, the hydraulic business’s current income of € 26.2 million in the first nine months of 2012 was also eliminated as a non-recurring item from EBIT in last year’s segment reporting.
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.