Financial position
In the first quarter of 2017, the KION Group used the promissory note to partly refinance the bridge loan of €2,543.2 million that it had taken out to finance the Dematic acquisition (acquisition facilities agreement, AFA). Tranche A2 of the AFA of €343.2 million, which was due to mature in February 2018, was repaid in full, while tranche B of the AFA of €1,200.0 million, due to mature in November 2018, has now been reduced to a residual amount of €536.2 million. The third tranche of the bridge loan, which has a volume of €1,000.0 million, is still due to mature in November 2021.
The promissory note, which was issued with a nominal value totalling €1,010.0 million up to 31 March 2017, are divided into several tranches maturing in May 2022, April 2024 and April 2027 and have floating-rate or fixed coupons. In the first quarter of 2017, the KION Group entered into a number of interest-rate derivatives in order to hedge the interest-rate risk resulting from the floating-rate tranches (cash flow hedge). The bridge loan, which originally had an agreed financing volume of €3,000.0 million, had already been reduced as a result of a capital increase in July 2016 that generated gross proceeds of around €459.3 million.
KION GROUP AG has issued guarantees to the banks for all of the payment obligations under the senior facilities agreement (SFA) and the AFA; it is the borrower in respect of all the payment obligations resulting from the promissory note. All covenants were complied with as at the end of the quarter.
Analysis of capital structure
Overall, current and non-current liabilities had risen to €8,993.2 million as at 31 March 2017 (31 December 2016: €8,824.2 million).
The financial liabilities recognised in the statement of financial position under liabilities rose slightly to reach €3,193.9 million (31 December 2016: €3,183.0 million). After deduction of cash and cash equivalents, net financial debt amounted to €2,857.1 million compared with €2,903.4 million at the end of 2016. This equated to 2.8 times the adjusted EBITDA on an annualised basis.
Long-term borrowing net of borrowing costs was virtually unchanged on the end of last year at €2,890.0 million (31 December 2016: €2,889.1 million). This includes the promissory note issued with a volume of €1,010.0 million in the first quarter of 2017. As at 31 March 2017, the residual amount owed under the bridge loan (AFA) was €1,536.2 million, while €350.0 million of the senior facilities agreement was drawn down on a long-term basis. The unused, unrestricted SFA loan facility stood at €892.3 million as at 31 March 2017. > TABLE 11
Net financial debt |
|
11 |
|
in € million |
31/03/2017 |
31/12/2016 |
Change |
Liabilities to banks (gross) |
2,189.1 |
3,188.6 |
–31.3% |
Promissory note – gross |
1,010.0 |
– |
– |
Other financial liabilities to non-banks |
7.3 |
7.2 |
1.3% |
./. Capitalised borrowing costs |
–12.5 |
–12.9 |
3.1% |
Financial liabilities |
3,193.9 |
3,183.0 |
0.3% |
./. Cash and cash equivalents |
–336.8 |
–279.6 |
–20.5% |
Net financial debt |
2,857.1 |
2,903.4 |
–1.6% |
The retirement benefit obligation under defined benefit pension plans had fallen only slightly to a total of €987.3 million end of March 2017 (31 December 2016: €991.0 million) because the discount rates had barely changed.
Lease liabilities arising from sale and leaseback transactions to fund the long-term leasing business with end customers amounted to €1,014.1 million (31 December 2016: €1,007.2 million). Of this total, €722.7 million related to non-current and €291.4 million to current lease liabilities.
The liabilities from the short-term rental fleet and from procurement leases are reported under other financial liabilities. As at 31 March 2017, other financial liabilities included liabilities of €434.3 million (31 December 2016: €440.0 million) arising from sale-and-leaseback transactions used to finance the short-term rental fleet. The other financial liabilities also included liabilities from residual value guarantees amounting to €16.6 million (31 December 2016: €16.7 million).
At €2,560.0 million, consolidated equity was close to the equivalent figure at the end of last year (31 December 2016: €2,535.1 million). Net income was partly offset by a very slight other comprehensive loss. The equity ratio was 22.2 percent as at 31 March 2017 (31 December 2016: 22.3 percent). > TABLE 10
(Condensed) statement of financial position |
10 |
||||
in € million |
31/03/2017 |
in % |
31/12/2016 |
in % |
Change |
Non-current assets |
8,938.9 |
77.4% |
9,004.6 |
79.3% |
–0.7% |
Current assets |
2,614.4 |
22.6% |
2,354.6 |
20.7% |
11.0% |
Total assets |
11,553.2 |
– |
11,359.2 |
– |
1.7% |
Equity |
2,560.0 |
22.2% |
2,535.1 |
22.3% |
1.0% |
Non-current liabilities |
6,119.1 |
53.0% |
6,151.7 |
54.2% |
–0.5% |
Current liabilities |
2,874.2 |
24.9% |
2,672.5 |
23.5% |
7.5% |
Total equity and liabilities |
11,553.2 |
– |
11,359.2 |
– |
1.7% |