Financial position
The principles and objectives applicable to financial management as at 30 June 2016 were the same as those described in the 2015 group management report.
In the first quarter of 2016, the KION Group renewed its funding with much better terms and thus successfully ended the funding structure that had dated back to the time before the IPO. The new senior facilities agreement comprises a revolving credit facility of €1,150.0 million (maturing in February 2021) and a fixed-term tranche of €350.0 million (maturing in February 2019). As part of this restructuring and optimisation, the syndicated loan dating from 2006 and the corporate bond (€450.0 million) were repaid.
KION GROUP AG has issued guarantees to the banks for all of the payment obligations under the new senior facilities agreement and for compliance with the related covenants. All covenants were complied with as at 30 June 2016.
A firm agreement has been reached with a group of banks for a bridge loan of €3.0 billion as funding for the planned acquisition of Dematic. This bridge loan is to be refinanced partly by long-term capital-market and bank debt and partly by equity.
Analysis of capital structure
The total financial debt recognised as at 30 June 2016 came to €805.6 million, which was higher than the figure at the end of 2015 of €676.5 million. After deduction of cash and cash equivalents of €84.3 million, net financial debt amounted to €721.2 million, compared with €573.5 million at the end of last year. Net debt as at 30 June 2016 was 0.8 times adjusted EBITDA for the past twelve months. It had therefore held fairly steady relative to earnings. > TABLE 12
Net financial debt |
|
|
12 |
in € million |
30/06/2016 |
31/12/2015 |
Change |
Corporate bond (2013/2020) – fixed rate (gross) |
– |
450.0 |
–100.0% |
Liabilities to banks (gross) |
800.4 |
225.9 |
>100% |
Liabilities to non-banks (gross) |
5.9 |
6.2 |
–4.9% |
./. Capitalised borrowing costs |
–0.7 |
–5.5 |
87.2% |
Financial debt |
805.6 |
676.5 |
19.1% |
./. Cash and cash equivalents |
–84.3 |
–103.1 |
18.2% |
Net financial debt |
721.2 |
573.5 |
25.8% |
Pension provisions had increased from €798.0 million at 31 December 2015 to €993.8 million as at 30 June 2016 due to a lower level of interest rates. The lease liabilities resulting from sale and leaseback transactions used to fund long-term leases with end customers rose to €904.3 million (31 December 2015: €855.6 million) on the back of the expansion of financial services activities. Of this total, €650.4 million related to non-current lease liabilities and €253.9 million to current lease liabilities. Other financial liabilities also included liabilities of €418.9 million from sale and leaseback transactions used to finance the short-term rental fleet (31 December 2015: €403.2 million).
Equity was lower overall than at the end of 2015, falling by €158.2 million to €1,690.5 million as at 30 June 2016 (31 December 2015: €1,848.7 million). This decrease was largely attributable to a significantly lower interest rate level for pensions. Further negative effects recognised in other comprehensive income and the dividend payment were largely offset by the level of net income. The equity ratio reduced to 25.1 per cent (31 December 2015: 28.7 per cent). > TABLE 13
(Condensed) statement of financial position – equity and liabilities |
13 |
||||
in € million |
30/06/2016 |
in % |
31/12/2015 |
in % |
Change |
Equity |
1,690.5 |
25.1% |
1,848.7 |
28.7% |
–8.6% |
|
|
|
|
|
|
Non-current liabilities |
2,922.4 |
43.4% |
2,860.0 |
44.4% |
2.2% |
thereof: |
|
|
|
|
|
Retirement benefit obligation |
993.8 |
14.8% |
798.0 |
12.4% |
24.5% |
Financial liabilities |
381.0 |
5.7% |
557.2 |
8.7% |
–31.6% |
Deferred tax liabilities |
297.5 |
4.4% |
302.7 |
4.7% |
–1.7% |
Lease liabilities |
650.4 |
9.7% |
617.7 |
9.6% |
5.3% |
|
|
|
|
|
|
Current liabilities |
2,116.2 |
31.4% |
1,731.5 |
26.9% |
22.2% |
thereof: |
|
|
|
|
|
Financial liabilities |
424.6 |
6.3% |
119.3 |
1.9% |
>100% |
Trade payables |
635.6 |
9.4% |
574.6 |
8.9% |
10.6% |
Lease liabilities |
253.9 |
3.8% |
237.9 |
3.7% |
6.7% |
|
|
|
|
|
|
Total equity and liabilities |
6,729.1 |
|
6,440.2 |
|
4.5% |