Events after the reporting date

Due to current market conditions and the KION Group’s significant repayment of debt as a result of and since its IPO, the KION Group can currently obtain finance on far more favourable terms than has been possible in the past. KION GROUP AG therefore signed a new syndicated loan agreement (senior facilities agreement) totalling €1,500.0 million with a syndicate of international banks on 28 October 2015. On 25 January 2016, the Executive Board of KION GROUP AG decided to implement the new funding structure of the KION Group by redeeming the existing syndicated loan dated 23 December 2006 comprising a revolving credit facility of €1,243.0 million and the KION Group corporate bond of €450.0 million that was issued in 2013 and was due to mature in 2020. The associated repayment was made on 15 February 2016 using funds drawn down under the new senior facilities agreement.

An amount of €5.4 million representing the proportion of the deferred borrowing costs relating to the corporate bond at the time of early repayment and a cash payment of €15.2 million representing early repayment charges were recognised as financial expenses in February 2016 along with an amount of €5.1 million representing the proportion of the deferred borrowing costs relating to the previous syndicated loan at the time of early redemption of that previous syndicated loan.

The new senior facilities agreement comprises a revolving credit facility of €1,150.0 million maturing in February 2021 and a fixed-term tranche B of €350.0 million maturing in February 2019.

KION GROUP AG has issued guarantees to the banks for all of the payment obligations under the new senior facilities agreement. Unlike the previous syndicated loan and the repaid corporate bond, the new syndicated loan agreement is not collateralised. Following repayment after the reporting date of the syndicated loan from 23 December 2006, all collateral furnished under the previous loan agreement has now been released.

Among other stipulations, the contractual terms of the senior facilities agreement require compliance with certain covenants. They also contain a financial covenant that requires adherence to a maximum level of gearing (the ratio of financial liabilities to EBITDA). Non-compliance with the covenants may, for example, give lenders the right to terminate the new syndicated loan agreement.

The KION Group took over Retrotech Inc., a systems integrator of automated warehouse and distribution solutions headquartered in Rochester, New York State, with effect from 1 March 2016 by acquiring 100.0 per cent of the capital and voting shares. The provisional purchase price for the net assets acquired is around €26.0 million. In 2015, Retrotech Inc. employed over 150 highly specialised employees and generated revenue of roughly €62.0 million.