Net assets
Non-current assets
Non-current assets had risen by €89.1 million compared with the end of 2013, reaching €4,524.8 million. Intangible assets accounted for €2,412.5 million (31 December 2013: €2,428.7 million). Goodwill and the KION Group’s brand names represented €2,092.4 million of that amount (31 December 2013: €2,089.4 million). Property, plant and equipment (including capitalised development costs) declined moderately because the capital expenditure of €133.1 million was more than offset by depreciation of €150.3 million. Rental assets in the brand segments’ short-term rental fleet rose to €487.1 million (31 December 2013: €461.2 million).
Financial services activities also contributed to the increase in non-current assets. Leased assets under leases with end customers that are classified as operating leases rose slightly due to the overall growth in business, advancing by €27.1 million to €279.0 million (31 December 2013: €251.9 million). Long-term lease receivables arising from leases with end customers that are classified as finance leases went up by €36.4 million to €345.3 million, compared with €308.8 million at the end of 2013. Another major factor in the rise in non-current assets was the recognition of deferred tax assets. However, the increase in assets was partly offset by the impairment charge recognised on the stake held in Linde Hydraulics. Overall, equity-accounted investments fell from €138.6 million to €114.6 million.
An explanation of the change in deferred tax assets is provided in note [14] in the notes to the consolidated financial statements.
Current assets
The 0.8 per cent growth in current assets to €1,603.7 million (31 December 2013: €1,590.7 million) was the result of higher trade receivables and a slight increase in inventories. Inventories had fallen again significantly from their level at 30 June 2014. The increase in the volume of receivables is attributable to higher product sales, especially in the second half of the year. There was only an insignificant change in the average number of days outstanding of receivables.
Another factor was the rise in other current financial assets. The main reason for this was the remeasurement of existing options relating to Linde Hydraulics.
Lease receivables from external end customers advanced from €170.8 million as at 31 December 2013 to €202.5 million on the reporting date owing to the increase in business volume.
The rise in current assets was restricted by the sharp decrease in cash and cash equivalents to €98.9 million (31 December 2013: €219.3 million), which was attributable to the increased use of Group liquidity to reduce financial debt. > TABLE 028
Inventories |
|
|
028 |
in € million |
2014 |
2013 |
Change |
Materials and supplies |
122.2 |
108.3 |
12.8% |
Work in progress |
71.5 |
66.7 |
7.1% |
Finished goods and merchandise |
330.8 |
331.2 |
–0.1% |
Advances paid |
4.7 |
5.5 |
–14.5% |
Total inventories |
529.2 |
511.8 |
3.4% |
Working capital (inventories and trade receivables less trade payables) was €562.8 million as at the reporting date, which was higher than it had been a year earlier (31 December 2013: €520.0 million). > TABLE 029
(Condensed) balance sheet, assets |
029 |
||||
in € million |
2014 |
in % |
2013 |
in % |
Change |
Non-current assets |
4,524.8 |
73.8% |
4,435.8 |
73.6% |
2.0% |
thereof: |
|
|
|
|
|
Goodwill |
1,497.1 |
24.4% |
1,494.7 |
24.8% |
0.2% |
Brand names |
595.4 |
9.7% |
594.7 |
9.9% |
0.1% |
Deferred tax assets |
357.9 |
5.8% |
295.5 |
4.9% |
21.1% |
Rental assets |
487.1 |
7.9% |
461.2 |
7.7% |
5.6% |
Leased assets |
279.0 |
4.6% |
251.9 |
4.2% |
10.7% |
Lease receivables |
345.3 |
5.6% |
308.8 |
5.1% |
11.8% |
|
|
|
|
|
|
Current assets |
1,603.7 |
26.2% |
1,590.7 |
26.4% |
0.8% |
thereof: |
|
|
|
|
|
Inventories |
529.2 |
8.6% |
511.8 |
8.5% |
3.4% |
Trade receivables |
598.2 |
9.8% |
558.7 |
9.3% |
7.1% |
Lease receivables |
202.5 |
3.3% |
170.8 |
2.8% |
18.6% |
Other current assets |
168.2 |
2.7% |
114.7 |
1.9% |
46.7% |
Cash and cash equivalents |
98.9 |
1.6% |
219.3 |
3.6% |
–54.9% |
|
|
|
|
|
|
Total assets |
6,128.5 |
|
6,026.4 |
|
1.7% |