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 |
||||||
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
|
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 |
||||||
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
|
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.