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. Since the start of 2015, KION India Pvt. Ltd., Pune, India, has been included in the LMH brand segment. This change has not been reflected in the prior-year figures in the segment reporting because it only had a minor effect on the key financials for the LMH and Other segments. Egemin Automation became the seventh brand in the KION Group upon completion of the acquisition on 7 August 2015 and has been included in the Other segment since then.
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 2015, ROE – earnings before tax as a percentage of average equity – was 13.2 per cent (31 December 2014: 13.0 per cent).
The tables below show information on the KION Group’s operating segments for the third quarters of 2015 and 2014 and for the first nine months of 2015 and 2014. > TABLES 30 – 33
Segment report for Q3 2015
|
Segment report for Q3 2015 |
30 |
|||||||||
|
in € million |
LMH |
STILL |
Financial Services |
Other |
Consolidation / Reconciliation |
Total |
||||
|
||||||||||
|
Revenue from external customers |
724.5 |
386.8 |
108.3 |
16.9 |
− |
1,236.5 |
||||
|
Intersegment revenue |
88.3 |
84.1 |
84.6 |
50.8 |
–307.8 |
– |
||||
|
Total revenue |
812.8 |
470.9 |
192.9 |
67.7 |
–307.8 |
1,236.5 |
||||
|
Earnings before taxes |
85.0 |
23.1 |
1.3 |
7.0 |
–32.6 |
83.8 |
||||
|
Financial income |
3.2 |
0.2 |
16.1 |
4.1 |
–12.4 |
11.2 |
||||
|
Financial expenses |
–6.7 |
–10.3 |
–14.2 |
–17.4 |
12.4 |
–36.1 |
||||
|
= Net financial expenses |
–3.5 |
–10.1 |
1.9 |
–13.3 |
–0.0 |
–24.9 |
||||
|
EBIT |
88.5 |
33.1 |
–0.6 |
20.3 |
–32.6 |
108.8 |
||||
|
+ Non-recurring items |
2.1 |
1.6 |
0.0 |
2.2 |
− |
5.9 |
||||
|
+ KION acquisition items |
5.1 |
1.5 |
0.0 |
0.0 |
− |
6.6 |
||||
|
= Adjusted EBIT |
95.7 |
36.3 |
–0.6 |
22.5 |
–32.6 |
121.2 |
||||
|
Profit from equity-accounted investments |
1.4 |
0.0 |
0.0 |
0.0 |
– |
1.4 |
||||
|
Capital expenditure1 |
16.4 |
10.0 |
0.0 |
4.3 |
− |
30.7 |
||||
|
Amortisation and depreciation2 |
23.2 |
11.6 |
0.0 |
4.7 |
− |
39.5 |
||||
|
Order intake |
818.4 |
485.7 |
190.8 |
65.1 |
–306.7 |
1,253.3 |
||||
Segment report for Q3 2014
|
Segment report for Q3 2014 |
31 |
|||||||||||
|
in € million |
LMH |
STILL |
Financial Services |
Other |
Consolidation / Reconciliation |
Total |
||||||
|
||||||||||||
|
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 equity-accounted investments |
–33.8 |
–0.0 |
0.0 |
0.0 |
– |
–33.8 |
||||||
|
Capital expenditure1 |
15.1 |
11.4 |
0.0 |
3.0 |
− |
29.4 |
||||||
|
Amortisation and depreciation2 |
21.3 |
10.2 |
0.0 |
4.1 |
− |
35.6 |
||||||
|
Order intake3 |
714.3 |
446.8 |
148.6 |
61.9 |
–255.4 |
1,116.1 |
||||||
Segment report Q1 – Q3 2015
|
Segment report Q1 – Q3 2015 |
32 |
|||||||||||
|
in € million |
LMH |
STILL |
Financial Services |
Other |
Consolidation / Reconciliation |
Total |
||||||
|
||||||||||||
|
Revenue from external customers |
2,199.8 |
1,138.9 |
292.8 |
25.8 |
− |
3,657.2 |
||||||
|
Intersegment revenue |
263.3 |
277.6 |
229.5 |
150.4 |
–920.7 |
− |
||||||
|
Total revenue |
2,463.0 |
1,416.5 |
522.3 |
176.1 |
–920.7 |
3,657.2 |
||||||
|
Earnings before taxes |
235.5 |
58.6 |
4.0 |
–22.8 |
–53.3 |
222.0 |
||||||
|
Financial income |
9.8 |
0.8 |
47.6 |
15.2 |
–36.6 |
36.8 |
||||||
|
Financial expenses |
–20.5 |
–27.5 |
–42.7 |
–51.5 |
37.3 |
–105.0 |
||||||
|
= Net financial expenses |
–10.7 |
–26.6 |
4.8 |
–36.4 |
0.7 |
–68.2 |
||||||
|
EBIT |
246.2 |
85.3 |
–0.8 |
13.5 |
–54.0 |
290.2 |
||||||
|
+ Non-recurring items |
6.0 |
2.2 |
0.0 |
21.3 |
–9.0 |
20.5 |
||||||
|
+ KION acquisition items |
15.6 |
4.7 |
0.0 |
0.1 |
− |
20.3 |
||||||
|
= Adjusted EBIT |
267.8 |
92.1 |
–0.8 |
34.9 |
–63.0 |
331.0 |
||||||
|
Segment assets |
5,162.2 |
2,216.7 |
1,510.4 |
623.7 |
–2,973.6 |
6,539.4 |
||||||
|
Segment liabilities |
1,760.0 |
1,349.5 |
1,466.4 |
3,190.5 |
–2,993.1 |
4,773.2 |
||||||
|
Carrying amount of equity-accounted investments |
52.0 |
4.2 |
19.5 |
0.0 |
− |
75.8 |
||||||
|
Profit from equity-accounted investments |
3.2 |
1.8 |
2.9 |
0.0 |
− |
7.8 |
||||||
|
Capital expenditure1 |
45.5 |
33.1 |
0.0 |
11.9 |
− |
90.5 |
||||||
|
Amortisation and depreciation2 |
69.2 |
34.6 |
0.0 |
13.2 |
− |
117.0 |
||||||
|
Order intake |
2,579.3 |
1,478.3 |
525.2 |
173.5 |
–937.7 |
3,818.5 |
||||||
|
Number of employees3 |
14,560 |
8,085 |
58 |
857 |
− |
23,560 |
||||||
Segment report Q1 – Q3 2014
|
Segment report Q1 – Q3 2014 |
33 |
|||||||||||||
|
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 equity-accounted investments |
87.8 |
4.3 |
17.5 |
0.0 |
– |
109.6 |
||||||||
|
Loss from equity-accounted investments |
–35.2 |
1.1 |
2.7 |
0.0 |
– |
–31.5 |
||||||||
|
Capital expenditure1 |
45.1 |
32.2 |
0.0 |
10.2 |
− |
87.4 |
||||||||
|
Amortisation and depreciation2 |
64.5 |
29.9 |
0.0 |
12.6 |
− |
107.0 |
||||||||
|
Order intake3 |
2,271.5 |
1,405.9 |
432.0 |
177.8 |
–799.5 |
3,487.7 |
||||||||
|
Number of employees4 |
14,048 |
7,934 |
61 |
681 |
− |
22,724 |
||||||||
As a result of the reclassification of KION India, LMH’s revenue from external customers increased by €22.6 million in the first three quarters of 2015, with a corresponding decline for the Other segment. The contribution to earnings from KION India amounted to €1.6 million.
The non-recurring items mainly comprise consultancy costs and expenses in connection with severance payments. In addition, write-downs and other expenses in relation to hidden reserves/liabilities identified in the process of acquiring equity investments are eliminated. Non-recurring items resulted in an overall net expense of €20.5 million in the first nine months of 2015 (Q1 – Q3 2014: €47.0 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 and other expenses in relation to the hidden reserves identified as part of the purchase price allocation.