Segment report

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 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 30 September 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 third quarters of 2014 and 2013 and for the first nine months of 2014 and 2013. >> Tables 29 – 32

Segment report Q3 2014

Segment report Q3 2014

>>TABLE 29

in € million

LMH

STILL

Financial Services

Other

Conso­lidation /
Recon­ciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

 

 

 

 

 

 

 

Revenue from external customers

682.3

360.2

84.6

11.9

−

1,139.0

Intersegment revenue

78.5

80.5

65.2

50.1

–274.4

–

Total revenue

760.8

440.7

149.8

62.0

–274.4

1,139.0

Earnings before taxes

84.4

24.5

1.3

–4.6

–17.8

87.8

Financial income

45.5

0.5

16.9

1.9

–12.5

52.2

Financial expenses

–4.5

–8.7

–16.4

–16.8

12.9

–33.5

= Net financial expenses

41.0

–8.3

0.5

–14.9

0.4

18.7

EBIT

43.4

32.8

0.8

10.4

–18.2

69.1

+ Non-recurring items

34.8

0.2

0.0

2.4

−

37.5

+ KION acquisition items

4.6

0.6

0.0

0.0

−

5.2

Adjusted EBIT

82.8

33.6

0.8

12.8

–18.2

111.8

Loss from at-equity investments

–33.8

–0.0

0.0

0.0

–

–33.8

Capital expenditures1

15.1

11.4

0.0

3.0

−

29.4

Depreciation2

21.3

10.2

0.0

4.1

−

35.6

Order intake

740.4

446.8

148.6

61.9

–255.4

1,142.2

Segment report Q3 2013

Segment report Q3 2013

>>TABLE 30

in € million

LMH

STILL

Financial Services

Other

Conso­lidation /
Recon­ciliation

Total

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

 

 

 

 

 

 

 

Revenue from external customers

622.4

372.9

76.1

10.9

–

1,082.3

Intersegment revenue

49.9

48.2

53.7

45.9

–197.7

–

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

–

4.7

+ KION acquisition items

5.8

1.5

0.0

–0.2

–

7.0

Adjusted EBIT

71.7

31.2

0.0

66.9

–69.3

100.5

Loss from at-equity investments

–3.5

–0.1

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

673.6

386.1

129.8

56.7

–199.8

1,046.4

Segment report Q1 – Q3 2014

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

3

Number of employees in full-time equivalents as at balance sheet date; Allocation according to the contractual relationship

Segment report Q1 – Q3 2014

>>TABLE 31

in € million

LMH

STILL

Financial Services

Other

Conso­lidation /
Recon­ciliation

Total

 

 

 

 

 

 

 

Revenue from external customers

2,025.5

1,078.4

237.1

31.3

−

3,372.3

Intersegment revenue

212.0

240.3

190.0

145.7

–787.9

−

Total revenue

2,237.5

1,318.6

427.1

177.0

–787.9

3,372.3

Earnings before taxes

215.2

56.5

3.9

–46.6

–53.3

175.8

Financial income

54.3

1.5

44.9

8.3

–35.0

74.0

Financial expenses

–19.2

–25.8

–42.6

–83.2

34.9

–135.9

= Net financial expenses

35.2

–24.3

2.3

–74.9

–0.1

–61.8

EBIT

180.1

80.8

1.6

28.4

–53.2

237.7

+ Non-recurring items

38.8

1.3

0.0

6.9

−

47.0

+ KION acquisition items

22.3

1.8

0.0

0.0

−

24.1

Adjusted EBIT

241.1

83.9

1.6

35.3

–53.2

308.7

Segment assets

4,825.7

2,167.7

1,325.8

701.5

–2,864.4

6,156.3

Segment liabilities

1,618.8

1,291.8

1,283.0

3,199.6

–2,852.9

4,540.3

Carrying amount of at-equity investments

87.8

4.3

17.5

0.0

−

109.6

Loss from at-equity investments

–35.2

1.1

2.7

0.0

−

–31.5

Capital expenditures1

45.1

32.2

0.0

10.2

−

87.4

Depreciation2

64.5

29.9

0.0

12.6

−

107.0

Order intake

2,350.0

1,405.9

432.0

177.8

–799.5

3,566.2

Number of employees3

14,048

7,934

61

681

−

22,724

Segment report Q1 – Q3 2013

1

Capital expenditures including capitalised R&D costs, excluding leased and rental assets

2

On intangible assets and property, plant and equipment excl. leased and rental assets

3

Number of employees in full-time equivalents as at balance sheet date; Allocation according to the contractual relationship

Segment report Q1 – Q3 2013

>>TABLE 32

in € million

LMH

STILL

Financial Services

Other

Conso­lidation /
Recon­ciliation

Total

 

 

 

 

 

 

 

Revenue from external customers

1,945.8

1,103.2

233.5

34.2

−

3,316.7

Intersegment revenue

185.6

160.4

151.3

144.6

–641.9

−

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

–

11.9

+ KION acquisition items

18.0

4.3

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

–

149.0

Loss from at-equity investments

–4.5

0.7

3.5

0.0

–

–0.3

Capital expenditures1

44.7

25.0

0.0

9.6

−

79.2

Depreciation2

64.6

28.9

0.0

12.6

−

106.1

Order intake

2,126.8

1,243.2

384.8

178.9

–637.1

3,296.6

Number of employees3

13,336

7,756

58

669

–

21,819

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. The non-recurring items included expenses in connection with the impairment charge of €32.0 million recognised on the equity-accounted investment in Linde Hydraulics, which relate to the LMH segment. Non-recurring items resulted in an overall net expense of €47.0 million in the first nine months of 2014 (Q1 – Q3 2013: net expense of €11.9 million).

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.