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 of the KION Group. Retrotech Inc. has been included in the Other segment under Egemin Automation since completion of the acquisition on 1 March 2016.
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 2016, ROE – earnings before tax as a percentage of average equity – was 12.8 per cent (31 December 2015: 13.1 per cent).
The tables below show information on the KION Group’s operating segments for the third quarter of 2016 and 2015 and for the first nine months of 2016 and 2015. > TABLES 31 – 34
Segment report for Q3 2016
|
Segment report for Q3 2016 |
31 |
|||||||||
|
in € million |
LMH |
STILL |
Financial Services |
Other |
Consolidation / Reconciliation |
Total |
||||
|
||||||||||
|
Revenue from external customers |
734.9 |
399.2 |
117.2 |
31.9 |
− |
1,283.2 |
||||
|
Intersegment revenue |
96.2 |
107.4 |
58.1 |
64.9 |
–326.7 |
− |
||||
|
Total revenue |
831.1 |
506.7 |
175.4 |
96.8 |
–326.7 |
1,283.2 |
||||
|
Earnings before taxes |
91.9 |
33.3 |
1.3 |
18.8 |
–49.2 |
96.1 |
||||
|
Financial income |
2.7 |
–1.5 |
17.4 |
2.5 |
–11.3 |
9.7 |
||||
|
Financial expenses |
–6.6 |
–7.2 |
–14.5 |
–9.7 |
12.0 |
–26.0 |
||||
|
= Net financial expenses / income |
–3.9 |
–8.8 |
2.9 |
–7.2 |
0.7 |
–16.4 |
||||
|
EBIT |
95.9 |
42.1 |
–1.5 |
26.0 |
–49.9 |
112.4 |
||||
|
+ Non-recurring items |
1.1 |
–0.7 |
0.0 |
7.3 |
− |
7.7 |
||||
|
+ KION acquisition items |
5.1 |
1.5 |
0.0 |
0.0 |
− |
6.6 |
||||
|
= Adjusted EBIT |
102.1 |
42.9 |
–1.5 |
33.3 |
–49.9 |
126.8 |
||||
|
Profit from equity-accounted investments |
0.3 |
0.0 |
0.0 |
0.0 |
– |
0.3 |
||||
|
Capital expenditure1 |
21.1 |
12.0 |
0.0 |
3.5 |
− |
36.6 |
||||
|
Amortisation and depreciation2 |
22.5 |
11.2 |
0.0 |
5.8 |
− |
39.5 |
||||
|
Order intake |
863.6 |
512.2 |
174.5 |
107.7 |
–331.3 |
1,326.6 |
||||
Segment report for Q3 2015
|
Segment report for Q3 2015 |
32 |
|||||||||
|
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 / income |
–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 Q1 – Q3 2016
|
Segment report Q1 – Q3 2016 |
33 |
|||||||||||
|
in € million |
LMH |
STILL |
Financial Services |
Other |
Consolidation / Reconciliation |
Total |
||||||
|
||||||||||||
|
Revenue from external customers |
2,259.2 |
1,186.9 |
313.5 |
88.1 |
− |
3,847.7 |
||||||
|
Intersegment revenue |
278.5 |
310.7 |
230.4 |
165.6 |
–985.3 |
− |
||||||
|
Total revenue |
2,537.7 |
1,497.6 |
543.9 |
253.8 |
–985.3 |
3,847.7 |
||||||
|
Earnings before taxes |
281.5 |
75.6 |
3.9 |
–35.7 |
–86.7 |
238.6 |
||||||
|
Financial income |
8.0 |
4.8 |
50.7 |
13.7 |
–33.9 |
43.2 |
||||||
|
Financial expenses |
–20.1 |
–30.2 |
–43.3 |
–64.4 |
35.2 |
–122.8 |
||||||
|
= Net financial expenses / income |
–12.2 |
–25.4 |
7.4 |
–50.7 |
1.3 |
–79.6 |
||||||
|
EBIT |
293.7 |
101.0 |
–3.5 |
15.0 |
–88.0 |
318.2 |
||||||
|
+ Non-recurring items |
2.3 |
0.8 |
0.0 |
24.6 |
− |
27.7 |
||||||
|
+ KION acquisition items |
15.5 |
4.7 |
0.0 |
0.0 |
− |
20.2 |
||||||
|
= Adjusted EBIT |
311.5 |
106.5 |
–3.5 |
39.6 |
–88.0 |
366.1 |
||||||
|
Segment assets |
5,259.9 |
2,430.8 |
1,725.4 |
850.1 |
–3,349.0 |
6,917.2 |
||||||
|
Segment liabilities |
1,903.3 |
1,588.4 |
1,680.8 |
2,955.8 |
–3,365.0 |
4,763.2 |
||||||
|
Carrying amount of equity-accounted investments |
51.4 |
4.2 |
21.7 |
0.0 |
− |
77.3 |
||||||
|
Profit from equity-accounted investments |
5.2 |
1.6 |
3.0 |
0.0 |
− |
9.9 |
||||||
|
Capital expenditure1 |
55.8 |
33.8 |
0.0 |
11.4 |
− |
100.9 |
||||||
|
Amortisation and depreciation2 |
67.5 |
33.3 |
0.0 |
16.7 |
− |
117.4 |
||||||
|
Order intake |
2,645.7 |
1,550.2 |
544.0 |
296.8 |
–986.4 |
4,050.4 |
||||||
|
Number of employees3 |
14,740 |
8,208 |
64 |
1,172 |
− |
24,184 |
||||||
Segment report Q1 – Q3 2015
|
Segment report Q1 – Q3 2015 |
34 |
|||||||||||
|
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 / income |
–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 |
||||||
The non-recurring items mainly comprise consultancy costs – primarily relating to the planned Dematic acquisition – 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 €27.7 million in the first nine months of 2016 (Q1 – Q3 2015: €20.5 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.