Long-term leasing business
The sales activities of the KION Group are supported by financial services in connection with direct long-term leasing business. In this business, trucks leased directly to the end customer are refinanced by the KION Group. The portfolio of the long-term leasing business, which supports the KION Group’s sales activities, continued to be focused predominantly in western Europe as at 31 March 2017. The long-term leasing business had a positive impact on the KION Group’s financial performance (> TABLE 13) in the first quarter of 2017 and also influenced its financial position (> TABLE 14). This information is taken from the internal reporting system and is determined using the assumption of a minimum rate of return on the capital employed. Net financial debt relating to the long-term leasing business increased to €115.6 million (31 December 2016: €106.3 million), reflecting the expansion of these activities. > TABLE 15
Profitability of long-term leasing business |
13 |
||
in € million |
Q1 2017 |
Q1 2016 |
Change |
Revenues |
104.9 |
97.7 |
7.4% |
Adjusted EBITDA |
28.7 |
23.4 |
22.3% |
Adjusted EBIT |
1.4 |
1.6 |
–13.7% |
Earnings before taxes (EBT) |
1.2 |
1.0 |
17.2% |
Financial position of long-term leasing business |
14 |
||
in € million |
31/03/2017 |
31/12/2016 |
Change |
Liabilities to banks |
115.6 |
106.3 |
8.7% |
Liabilities from financial services |
16.0 |
8.3 |
92.8% |
Lease liabilities |
1,014.1 |
1,007.2 |
0.7% |
Calculatory equity |
40.2 |
39.4 |
2.1% |
Total |
1,185.9 |
1,161.2 |
2.1% |
|
|
|
|
Leased assets |
443.9 |
429.7 |
3.3% |
Lease receivables |
742.0 |
731.5 |
1.4% |
Total |
1,185.9 |
1,161.2 |
2.1% |
Refinancing of long-term leasing business |
15 |
|||
|
31/03/2017 |
31/12/2016 |
||
in € million |
KION Group |
thereof |
KION Group |
thereof |
Liabilities to banks |
2,189.1 |
115.6 |
3,188.6 |
106.3 |
Promissory note – gross |
1,010.0 |
– |
– |
– |
Other financial liabilities to non-banks |
7.3 |
– |
7.2 |
– |
./. Capitalised borrowing costs |
–12.5 |
– |
–12.9 |
– |
Financial liabilities |
3,193.9 |
115.6 |
3,183.0 |
106.3 |
|
|
|
|
|
./. Cash and cash equivalents |
–336.8 |
– |
–279.6 |
– |
Net financial liabilities |
2,857.1 |
115.6 |
2,903.4 |
106.3 |
|
|
|
|
|
Lease liabilities |
1,014.1 |
1,014.1 |
1,007.2 |
1,007.2 |
Liabilities from financial services |
16.0 |
16.0 |
8.3 |
8.3 |
Interest-bearing net liabilities |
3,887.3 |
1,145.7 |
3,918.9 |
1,121.8 |
|
|
|
|
|
Liabilities from short-term rental financing |
450.9 |
– |
456.7 |
– |
Liabilities from procurement leases |
21.5 |
– |
21.0 |
– |
Liabilities from finance leases |
472.4 |
– |
477.7 |
– |
Net operating debt |
4,359.7 |
1,145.7 |
4,396.6 |
1,121.8 |