In addition to the subsidiaries included in these condensed consolidated interim financial statements, the KION Group maintains direct or indirect relationships with a large number of unconsolidated subsidiaries, joint ventures and associates in the course of its ordinary business activities. Related parties that are controlled by the KION Group, through which a significant influence can be exerted over the KION Group, or which are members of the Superlift group are either included in the list of shareholdings as at 31 December 2013 or in >> TABLE 33 below.
|
Related parties |
>>TABLE 33 |
|
|
|
|
Superlift Holding S.à r.l., Luxembourg |
Entity with significant influence |
|
Kohlberg Kravis Roberts & Co. L.P., New York, USA |
Entity with significant influence |
|
Goldman, Sachs & Co., New York, USA |
Entity with significant influence |
|
Weichai Power Co. Ltd., Weifang, China |
Entity with significant influence |
Advisory agreements
KION GROUP AG concluded a new global advisory agreement on 7 June 2013, with KKR and Goldman, Sachs & Co., which stipulates a fixed annual fee of €125,000 each. Under the agreement, KKR and Goldman, Sachs & Co. will continue to provide limited advisory services for the KION Group after its IPO in the event that the KION Group decides it wishes to draw on this expertise. In the first quarter of 2014, a total of €0.1 million was recognised as an expense. A pro-rata amount of €1.2 million had been recognised as an expense in the first quarter of 2013 under the old advisory agreement.
Weichai Power
Weichai Power Co. Ltd., Weifang, China (referred to below as Weichai Power) holds a 33.3 per cent stake in KION GROUP AG, Wiesbaden. In addition, Weichai Power has a controlling interest (70.0 per cent) in Linde Hydraulics GmbH & Co. KG, Aschaffenburg (referred to below as Linde Hydraulics). The remaining shares (30.0 per cent) in Linde Hydraulics are held by the KION Group. During the first three months of 2014, the KION Group earned revenue of €4.9 million from selling goods and services to Linde Hydraulics and its subsidiaries (Q1 2013: €4.3 million). Over the same period, companies in the KION Group obtained goods and services from Linde Hydraulics and its subsidiaries amounting to €30.1 million (Q1 2013: 35.3 million). The receivables arising from the sale of goods and services stood at €2.5 million as at 31 March 2014 (31 December 2013: €6.0 million). No valuation allowances for trade receivables had been recognised as at the reporting date, a situation that was unchanged on 31 December 2013. As at 31 March 2014, liabilities to Linde Hydraulics and its subsidiaries resulting from the purchase of goods and services came to €9.2 million (31 December 2013: €2.7 million).
In parallel with its global advisory agreement with KKR and Goldman, Sachs & Co., KION GROUP AG also concluded a global advisory agreement with Weichai Power on 7 June 2013. Under the agreement, Weichai Power will provide advisory services related to the Asia-Pacific region for the KION Group after its IPO in the event that the KION Group decides it wishes to draw on this expertise. A fixed annual fee of €125,000 was agreed for these services. In the first quarter of 2014, a total of €0.0 million was recognised as an expense. There had not been any reportable transactions with Weichai Power in the first quarter of the previous year.